Self solving problems

Varoufakis has found someone to fund his idea of contesting the EU elections as one party across the continent. He insists that this is very important:

What we need, in the UK and in the EU, is a combined municipal, national and pan-European strategy to tackle our common crises: private and public debt; the low levels of investment that contribute to precariousness, unemployment and poverty;

He is an economist. Perhaps not a ground breaking one but certainly a competent one. Thus he knows that we’ve already solved that low levels of investment problem.

As everyone continually complains, capital returns are up, capital is gaining ever more of the economy (not actually true but they keep complaining it is) and asset prices are sky high. As any economist does know that increases the incentives for capital formation and investment, doesn’t it?

Thus we’ve already solved that problem.

2 thoughts on “Self solving problems”

  1. > “the low levels of investment that contribute to precariousness”

    Eh? On an individual level, low investment (i.e. having low savings) is by definition a precarious situation for that individual; but it’s not at all clear that the same applies on a national scale. Particularly so when we consider what passes for “investment” these days, as in “my government will invest £squillions in the NHS”.

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