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Spudnomics

And, let’s be clear, that abandoning this proposal is economically illiterate, as I suggested in the Guardian a few days ago. Not only would this plan pay for itself out of the economic multiplier effects that it would generate, which would give rise to significant further private sector investment and private spending, and so tax paid,

Apparently government spending has a high multiplier when the economy is already at full employment.

This is not one of those insistences empirically supported.

5 thoughts on “Spudnomics”

  1. This action on Labour’s part is politically incomprehensible. Announcing this today, when the Tories are in complete mayhem after yesterday‘s debacle from Sunak at Prime Minister’s Questions, is extraordinary.

    The PMQ’s thing is the ultimate example of a storm in a teacup. I’d guess it probably regained some voters pissed off at the absurd indulgence given to sexual deviants, paedophiles and perverts by the entire political class or had zero impact .

    And, let’s be clear, that abandoning this proposal is economically illiterate, as I suggested in the Guardian a few days ago. Not only would this plan pay for itself out of the economic multiplier effects that it would generate, which would give rise to significant further private sector investment and private spending, and so tax paid, it is also massively less than the expenditure that we know is actually required if net zero is to be achieved.

    Jesus – I thought it was a one off £28 billion which we couldn’t afford – this bastard is looking to steal that and more every single year. The sooner he can be detained for mask wearing (see post passim) the better to be honest.

    That has enormous political consequences. When Labour has said almost nothing about what it will do in office that is of any consequence, this was the one cause that Labour seemed to be championing that people might believe in. As far as I can see, after abandoning it, Labour now stands for nothing except more austerity. As electoral offerings go, that has to be about the most dismal that any party could present, yet that is what Labour wants to put to the people of this country.

    In fairness he’s right to a small degree- most people are clueless as to what Labour actually stand for – beyond being well to the Left of North Korea on most ‘social’ issues I couldn’t tell you. They seem to be in politics for power for its own sake (you could argue that’s true of anyone in politics) but they basically want the salaries and the ability to control every aspect of your lives. I think Murphy’s anger is that by managing to piss off even the Corbynites last time out he has prevented himself being among the controllers, although as the BiS says his policies have been adopted to a large degree by all the major parties.

    The right-wing of Labour often likes to claim that the left-wing manifestos that it has, very rarely, presented to the public have been the longest suicide notes in its history. They have always been wrong to say so, but this abandonment of hope by Labour, which is what today’s announcement will represent, will undoubtedly be the shortest suicide note in its history.

    I know so many people are pining for not being able to eat meat, go on holiday or drink alcohol – I hear such requests all the time. Net Zero is the flavour of the month in so much of the Red Wall. Last time I was in the Working men’s club in Consett I was admiring the pictures of George Soros and Klaus Schwab I saw on the wall..

  2. I would also point out when you inquire about evidence for any of his contentions RM channels the famous ‘Badges’ clip from ‘Treasure of the Sierra Madre’

    ‘Evidence? We aint got no evidence! We don’t need no evidence! We don’t have to show you any steenkin’ evidence!!’

    he’ll probably chuck the words ‘neoliberal’ and ‘troll’ into the mix liberally also..

  3. Wasn’t he arguing last week that in order to tax inflation out of the economy in an MMT world you need to tax the wealthy, because they have a greater propensity to spend than everyone else?

  4. Martin Near The M25

    That was last week. The moon has since moved on from Waning Gibbous Phase to Last Quarter. Everything is different now.

  5. If government spending has a multiplier above 1, then given the huge amount it spends, we must have no national debt.

    Or maybe the multiplier is below 1,in which case we have a situation whereby the more the government spends the poorer we become.

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