When economists do agree ...
Well, here is a case of two economists in agreement. I totally agree with the Daily Mail interview by Peter Spencer, chief economic adviser to the Ernst & Young Item Club and a former treasury mandarin, in which he says he is ‘concerned’ about the prospect of a Labour government after the general election in May.
He said that ‘even Neil Kinnock’ would have been a safer pair of hands than Mr Miliband because ‘he knew the way the world worked’.
Mr Spencer says George Osborne’s plans to cut state spending will not lead to ‘Armageddon’ despite protests from the left. ‘The world has moved on from the 1930s,’ he said, dismissing claims from Labour and the unions that the Tories’ plans would cripple public services.
He added that whoever is Chancellor after the election will need to return Britain to the black and start paying down the national debt after two decades of borrowing.
You can read the full article at the Daily Mail website at:
http://www.dailymail.co.uk/news/article-2990656/Miliband-doesn-t-know-world-works-Leading-economist-attacks-Ed-saying-doesn-t-right-mind-set-run-country.html#ixzz3UArSMVYK
Comments
to me to continually spend more than you earn is the path to certain doom. So the way out is to spend less. I thought that was pretty obvious.
Mike earns £400 per week but is spending £500 per week and now the bank are mad with him, can you find a solution?
hmmm, can Mike get a pay rise?
- no his boss does not want to give him a pay rise as the boss thinks he is overpaid already.
ah, ok, then Mike is going to have to cut his spending by a lot, he is going to have to cut it to less then the £400 he earns, lets say £350 and then pay the extra £50 back to the bank to get them off his back, otherwise the interest will just spiral out of control.
I really just cant grasp why less public spending will cripple us.
The problem is that many people don't want to believe it. It is so much easier for some people to believe that cuts are only happening because rich wicked tories like cutting things than to accept the consequences of realising that Britain can no more go on year after year consuming more wealth than we create, than an individual household can go on spending more money than they have for year after year without consequences.
You can summarise the results if a country tries to do that in one word: Greece.