"No. 10 presses George Osborne to kick-start the economy" Telegraph
The telegraph recognises there is a problem with their political wing's economic policy: the Tory policy is not delivering growth.
I am highly convinced that with basic economics backing the left, we should be able to hammer home the case for a policy switch.
I comment offering my suggestions
Continuing my suggestion that the nation must look again at leftist economic policies. (http://www.telegraph.co.uk/news/politics/8661215/No.-10-presses-George-Osborne-to-kick-start-the-economy.html#comment-263869704)
Is subsidy really an opportunity cost? The tory/new labour concern about subsidy is that if you are subsidising a 'failing' company, then you are not spending that same money more usefully.
I think we're still trapped in the washington consensus of none intervention. To Tory/New Labour thinking, a trade deficit is not a problem, so long as there is inward investment to match. During the credit boom era, that was not a problem. Yet now, nations like ours, like Ireland, seem to be scratching their heads in hope for new inward investment that will never come.
We need to plug the gaps in our economy, stop bleeding what wealth we have to strong exporters. Find ways to subsidise our production. A subsidy when spent will circulate in the economy much of which eventually returns to the treasury via VAT and taxes whilst plugging a gap that we're bleeding from as a nation - our shocking trade imbalance inspite of devaluation. A trade balance with ideally a period of a surplus is what we most need.
Blog plug, this is what libertarian capitalism looks like:
for decades now, the left, the real left, not the new labour joke, have been out of power.
at what point of continued failure do we start as a nation listening to the left again?
fundamental economics seems to back the left example:
GDP= Money Supply x Velocity of Money
so the bank of england, still using very rightist policy levers, slashed interest rates to near 0. Printed money to boost the Money Supply aspect of the equation.
Alls that has done is inflated gold prices - there is no demand in the economy - no spending (little velocity of money)
We know some facts about human behaviour. the higher gainers, save more, the poorer workers earn less but save less, spend more.
It would seem obvious that redistributing tax burden away from poor and middle income earners should boost velocity of money.
By boosting demand signals, we would then be pulling on the string. Right now we've just been pushing on the string.
there is a lack of recognition that increasing the wealth gap reduces GDP/capita.
theres lots of other basic economic concepts which you can argue backs left wing notions.