It’s demand stupid

It’s demand stupid

Simon Wren Lewis tweets on the Budget, the full thread talks of macro-economic illiteracy, the need to stimulate demand and the fact that this is a budget for austerity. He writes more on his blog, mainly macro where he talks about the need to spend more on those with less savings i.e. the poorer 20% of our society because their multiplier is higher as is their need. He also repeats the Economics 101, that fiscal policy is about growth and monetary policy about inflation. I also link to Paul Mason's comment which reinforces the need to concentrate on demand.

War & Schools

In this article in the Guardian, Richard Norton Taylor looks at the UK defence budget, quotes its critical parliamentary scrutiny, the NAO and defence select committee through the prism of an examination of value for money; It costs too much, the nuclear subs and aircraft carriers are of questionable value and as suggested by Conan’s “Riddle of Steel”, weapons need to be wielded by people, we don’t have enough and they are not well enough educated.

It’s almost as if the ruling class and their educational policy makers have forgotten that the greatest educational reform acts were passed in response to the challenge to the nation of then recent wars. …

Lewisham Labour keeps its promises, as well is it can

Lewisham Labour keeps its promises, as well is it can

Yesterday, Lewisham Council at its Budget Setting meeting, agreed a legal budget. While this involves reducing expenditure in some areas because of Tory central government grant cuts, the Labour Council kept its key manifesto promises, to freeze the Council Tax, sustain the living wage & build new houses. I made a storify from tweets and blogs from the Mayor and councillors. which tells part of the story. John Coughlin, the sole Green Councillor allowed himself the luxury of voting  …

Budget 2013

Osborne’s budget was not good for him and the Tories, and they were partly lucky, and partly cunning as they buried in stories that focused on other issues. There were four headline issues to consider, Macroeconomics, Tax, Housing and Beer. …

On parliament and the EU budget

In parliament, Labour voted with Tory europhobes last week to express the view that the next seven year budget for the EU should be less than the previous seven years budget. I think this is playing with fire. In voting with the Tory backwoodsmen, Labour gives credibility to their xenophobia and also to their austerity agenda. It is also committing to cuts for seven years. However it is a fact that the EU budget is about 1% of EU GDP and can thus not have much impact on the growth of the European economy, although the pump priming aspect of the expenditure programmes is one of the reasons that the majority of the EU member states want to see an increase in expenditure. …