Wednesday, December 10, 2008
Our old friend Peer Steinbruck, the German finance minister, has added another quote to his earlier "lemming" comment regarding the folly of following Gordon ("Saviour of the World") Brown's financial nostrums:
"Our British friends are now cutting their value-added tax. We have no idea how much of that stores will pass on to customers. Are you really going to buy a DVD player because it now costs £39.10 instead of £39.90? All this will do is raise Britain's debt to a level that will take a whole generation to work off. The same people who would never touch deficit spending are now tossing around billions. The switch from decades of supply-side politics all the way to a crass Keynesianism is breathtaking. When I ask about the origins of the crisis, economists I respect tell me it is the credit-financed growth of recent years and decades. Isn't this the same mistake everyone is suddenly making again, under all the public pressure?"
Isn't it about time we heard this sort of criticism more widely reported in the MSM? Brown's bogus spin is that the Conservatives are the "Do Nothing Party" but there are many people who think that his solution will be disastrous for the country's long-term prospects, will have little or no effect on the length and depth of the recession and, in fact, will probably make it harder to return to growth?