The thing is he actually believes this:
That understands that if it delivers full employment budgets will balance,
It is necessary, just occasionally, to look up from the desk out of that window. To observe reality and check that it coincides with the ivory tower view.
So, the UK back three months. We were at full employment. The unemployment rate was down to where it had last been seen in the late 1960s. The employment to population ratio was the highest we’ve ever measured it.
The UK government was running a budget deficit.
The US was at equally low levels of unemployment. Again, back at rates last seen in the 1960s. The US Federal government was running a budget deficit – actually, a rising one.
Germany has rather a high unemployment rate. At least compared to the US and UK it does. Germany has been running a budget surplus.
So, full employment does not mean that the budgets balance, the absence of full employment does not mean that they won’t. It would seem that how much is spent in relation to what the tax rates are has something to do with it.
Reality, proving Spudda wrong again.