Time to break the cycle of despair
Every serious expert I know thinks that the UK needs to invest more, much more. We have under invested for decades, we are far behind our rivals as a result, with little chance of higher productivity and growth if we don’t invest more.
Today a group of eminent economists have added their name to this policy in a letter in the FT. But will it happen?
I am not very confident, it is always easier to try to balance the books rather than persuade the markets that borrowing more now is essential and good for the economy in the longer term.
It will really take a sea change in political risk taking, to make this happen. The government has to shake off the Thatcherite lies about balancing the books and change the way total debt is counted in this country, in particular it has to stop paying the Bank of England for buying gilts. This is madness and just sucks money out of the government and gives it to the Bank.
A huge increase in investment spending is desperately needed but even this government seems bound by old rules and ways of thinking. Nothing will change until that changes.
Economics, trade and Brexit, not necessarily in that order but the dog always comes first.
By Jonty Bloom Media
Amazing how all that Thatcherite shit has managed to become mainstream. Disaster!
New KISS (keep it simple stupid) narrative needed. By way of a local example on a minuscule scale. Hammersmith Bridge repair to previous structure. Cost approx £200mn now probably closer to £300mn with big uncertainties so let’s make it £350. Minimum repair to make it able to accommodate lightweight public transport. Maybe this transport doesn’t exist but investment in getting it designed procured and installed say back of an envelope £50mn plus repair to lower standard another £50mn.
Getting the bridge operating as return to previous loading will require significant ongoing maintenance. The bridge will not have changed nor will means of crossing it. A simple cost benefit analysis either realistic figures will show why investment Is the best option. Do nothing means more disruption pain and benefits nobody. Plus any major repairs will disrupt use of the bridge and have big impact on local communities.
Three parties involved TfL/mayor, government and Hammersmith and Fulham council. Polity most directly affected is north Barnes in Richmond Council. Combined action may be possible with new government but it requires lead from the three main parties. Richmond will not swing across to Labour or tories as solid LD majority. Just needs some creative thinking and advocacy. Just …