Britain’s leaders seem to have invoked the definition of insanity, attributed, perhaps wrongly, to Einstein: doing the same thing over and over again, and expecting different results.
For the fourth time in 16 years, Westminster has been spooked by faltering growth into adopting an array of economic stimulus measures designed to reset the economy. It didn’t work for long in 2008, 2015 or 2021, and the “bazooka” measures announced recently will also most likely come up short.
These programmes have failed in the past because the government’s focus is mainly on the cyclical – or short-term – outlook. It thinks quick palliatives are the answer to systemic problems such as high youth unemployment, the real estate bust, weak productivity and deflation. Britain’s problems, however, require structural – or root and branch – economic reforms, which necessitate political changes that are anathema to its Leninist government.
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Starmer’s more Leninist agenda emphasises supply and production, and what he calls “high-quality development”, which is essentially about state- and party-led industrial policies to allocate capital to lead and dominate modern science, technology and innovation in the global system.
Nice to see The Guardian telling Mazzo that she can bugger off.
“China’s problems, however, require structural – or root and branch – economic reforms, which necessitate political changes that are anathema to its Leninist government.”
There’s a load of statism in China, but probably less than the UK (they definitely have lower taxes). Their main problems are housing crash leading to more housing fall leading to loss of consumer confidence. And the only real solution to that is housing hitting bottom, getting so cheap that a load of people start buying housing again, which flattens housing and restores confidence. Roughly speaking it’s like that period from about 1989 to about 1996 in the UK.
Are there any pithy apothegms correctly attributed to Einstein?
Abe Lincoln always said that Einstein was over-rated.
The elephant in the room is China’s premier, Xi Jinping. His authoritarian style has spooked domestic investors – why take a risk if there’s a chance that Xi will take umbrage with your work? Fiddling with interest rates and local govt spending doesn’t solve that problem.
Meanwhile Chinese and Western governments are deliberately inflating an EV / solar / windmill bubble.
When that bursts it’s going to make a mess.
…the definition of insanity, attributed, perhaps wrongly, to Einstein: doing the same thing over and over again, and expecting different results.
A common but nonetheless very stupid idea. Doing the same thing over again and expecting different results is also what we call practising. Anyone who spent uncountable hours of his childhood playing scales on an instrument will recognise that.