Letters to the press by esteemed economists do not have a good track record ..
But 16 have put their head above the parapet to condemn Darlings plan to spend his way out of recession.
Its possible they are now facing the wrong way, for having exposed themselves its fire from the direction of the parados they now need worry about.
Still … their remarks seem to make sense – but we must ask just how serious is Darling/ Brown about this spending? Given the track record of Labour is this perhaps just propaganda? They know the pressure will be on Sterling. But for political reasons they say what they have to.
Even as it is we are committed to £9+ billion of pointless expenditure on the Olympics. Do we need more? As the article points out – how can we be sure that this rushed expenditure (if it is real and not a phantasm) will be worth a damn in the future? Its quite possible it will starve the really needy parts of our economy
I am not the greatest fan of John Redwood – but he has a point –
– Why should we taxpayers fund an anti competitive bank merger?
– Has the fall in the pound reflected the inevitable fall in interest rates? If so it would be crazy not to massively cut them now. Sterling has got to be a worry – a depreciating currency will impoverish us – but in the real world I foresee death famine and pestilence if we do not directly help businesses and plain old fashioned ordinary people.
This to me seems to be the ultimate wrong headedness of the Darling/Brown ‘ Viv Nicholson ‘ policy.