Excessive increases in the money supply have severe and far-reaching economic consequences. Yet neither ministers nor the electorate have any say over this crucial area.
Jeremy Hunt presents to Parliament the Government’s plan centred on his so-called Four Es: Enterprise, Education, Employment and Everywhere.
As the Government plots a course toward economic stagnation, Labour are positioning themselves as a pro-business party.
Hers is a flimsy proposition that Team Rishi could easily defeat, if only they had something substantial to put in its stead.
There are plenty of areas where wasteful public spending can be trimmed – but a strong dose of the wrong austerity will deepen the recession.
Of course one must not be complacent. I have worked long enough in the markets to know that when they smell blood there can be trouble.
Nobody is talking about a return to the days of politicians setting interest rates, but it must reckon with its mistakes.
We need a supply-side strategy from the whole of government to produce more energy, food, and other goods and services.
As the man himself famously did not say: “When the facts change, I find new reasons to advocate for stimulus packages.”
It allows politicians to squeeze voters whilst lying about being tax-cutters at election time.
He says that road haulage interests are trying to revive the pre-Brexit economy – but that the Government will stand firm for higher wages.
Preventing as much long-term damage to the economy as possible now should be the Chancellor’s priority.
We are in danger of losing sight of the simple truth which has been a favoured phrase of Tory politicians through the ages: borrowing today is simply taxation deferred.
In the first piece of a mini-series, our guest author also argues the Government should look again at IR35, and make it more worthwhile to work.
Neither finance ministers nor central bankers should mislead themselves or the public with the promise implied by talk of when interest rates come down.