Fifth, this was a budget for recession. I discussed this yesterday, but it is worth repeating. If the government cuts its growth to a rate less than inflation and expects less than inflation rate pay rises then it matters little that profits might rise excessively because they will not spill over into serious growth via multiplier effects, whilst consumer spending and government spending which would do that are not available to drive that process. That means we cannot have growth.
Apparently productivity growth isn’t a thing. Three centuries of economic history wiped out by a faulty assumption.
“profits might rise excessively”: I suppose that profits are always excessive in Spudworld.
To Spud, everything he says is worth repeating. The more he repeats it the more true it becomes. (Even if it’s the opposite of what he said yesterday).
Real growth, positive but less than monetary inflation, or nominal growth less than monetary inflation?
Bit of a dufference!
I think I’ll leave the typo as it stands