We’re told that government borrowing is falling, the deficit closing. This therefore means that it’s possible to relax austerity, to start spending more upon sweeties for the voters. This being exactly and precisely why Keynesianism as a practical matter doesn’t work. For politicians will follow the fun bit and not the difficult part. Thus as an overall theory it simply is, to use a governmental phrase, no longer operative.
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Public borrowing is on track to hit its lowest level in 16 years, leaving the Chancellor Philip Hammond with the ability to sanction additional spending in his upcoming Budget.