There’s a reason he’s not a professor of economics you know

Third, we need to get on with out next industrial revolution. This is the transformation to a sustainable basis for living. The payback on investment in sustainable energy is incredibly high: the industry could create jobs in every UK constituency and durable jobs for vast numbers who want them.

Rather missing the point that jobs are a cost, not a benefit.

Fifth, in point Brexit Britain we have to get banking right. Firstly, we have to recognise that banking as most people think of it is a service which makes almost no money for banks right now.

Sigh, the free float is the very thing which makes banking profitable.

Third, we need to build strong economic relationships based on sustainable foundations. Our trade deficit is a real issue, unlike our government deficit, which is just a matter of book-keeping.

And he’s got that the wrong way around, hasn’t he? The trade deficit is, by definition, balanced by the capital surplus. Thus it’s not an issue.

First, the requirement for QE disappears if we are not in the EU. We can simply fund any government deficit by the Bank of England making direct loans to the Treasury if it wishes. The first opportunity Brexit provides is to abandon the deficit paranoia which is implicitly required by EU membership.

And that’s the road to Venezuela and Zimbabwe.

Sigh.

14 thoughts on “There’s a reason he’s not a professor of economics you know”

  1. Fascinating stuff from him. All these “opportunities” (his word) that before the referendum he told us simply weren’t there. For example Brexit allows us to provide trade union-based employment protections that the EU denied us. Which is strange because, before the referendum, those were exactly what the EU and only the EU had or could provide.

    Fuckwit or liar. It’s so hard to tell.

  2. Murphy is a classic example of a person who is so un-selfaware, he is able to blunder around a subject in blissful serene ignorance, but like a wrecking ball leaves a pile of utter chaos in his wake.

    Observers are amazed at the destruction, Murphy only sees a peaceful sunlit pastoral meadow.

  3. BF

    To be fair to Murphy the intellectual quality of the marxist end International Political Economy, which is where his co-conspirators are, is pretty poor. Varoufakis is considered to be smart by them. Murphy is in the bottom quartile, but by no means a major outlier. (Yup, they are mainly fuckwits and liars)

  4. “jobs are a cost, not a benefit”

    Which explains why politicians are always talking about creating jobs. Creating cost is what they do best.

  5. Another De Beers style gem bonanza from the master, but a rare example of humility contained within – I wonder if this is a typo?

    ‘I’m not pretending I know all the answers here: I am suggesting that they exist.’

  6. Rob

    “The payback on investment in sustainable energy is incredibly high

    *citation needed”

    Don’t hold your breath, because, obviously, if it was incredibly high, every man and his dog would have piled into it. If he meant that the subsidies were incredibly high, that’s a different matter.

  7. the industry could create jobs in every UK constituency

    You see that in every justification for “sustainable” energy. As if that were the goal of it, or at least an additional benefit. Sort of reminds one of the (possibly apocryphal) story about Milton Friedman’s quip to an Asian dignitary at a construction site, “Oh, I thought you were trying to build a canal. If it’s jobs you want, then you should give these workers spoons, not shovels.”

    It’s the Luddite left in a nutshell. The entire history of human progress has been to do more with less, and now on account of saving the planet we’re supposed to go back to technologies that do less with more. Less energy, less predictability, less resiliency, but more people to do it, more land being used, more birds being fried or decapitated, etc. The fact that this is even being considered is an indication of the abysmal state of education in the developed world in general.

  8. Bloke in North Dorset

    “The payback on investment in sustainable energy is incredibly high”

    A few years ago a Greeny was claiming that renewable energy would create at least 80,0000 extra jobs and that these would be high paid jobs. Assuming high paid to be £50k, for the sake of argument, and that the total cost of employment is 2 x wage, they didn’t understand that bit, it works out at an extra £4bn in costs for the energy industry. There’s around £29m households in the UK (believe me, I had to do the research once) so that turns out to be an extra £140 per year on everyone’s energy bills.

    This was at a time when everyone was talking about fuel poverty, but they still couldn’t see a link between costs to a business and increased cost to that businesses customers.

    I suppose Murphy thinks the extra taxes are payback, forgetting that this is money households don’t spend elsewhere.

  9. “next industrial revolution”

    Hang on, isn’t this the fucktard who said there is no innovation in business right now, blissfully unaware of Industry 4.0?

  10. “Third, we need to get on with out next industrial revolution.”

    To be fair, he says we should get on WITHOUT next industrial revolution.

  11. And I thought that public investment was required when returns were not high enough (to attract private investment) but we still wanted things (the lefties tend to describe this as market failure)

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