Labour’s Spending Plans Are “Physically Impossible”

So says Paul Johnson of the IFS at least, telling us that it’s simply not possible to ramp up public spending by £50 billion a year rapidly.

He’s right of course:

However, Mr McDonnell was committed to far higher spending, Mr Johnson said. “The capacity of the public sector to spend that effectively and in short order must be in doubt. There is next to no chance that investment spending could sensibly be increased by more than £50 billion a year within a year or two,” he said.

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South Korea’s Done What Trump Insists Germany Should – Pay More For Defence

The specific circumstances are indeed different in South Korea and Germany but Trump’s been making similar demands in both places. That the countries should be paying more of their defence costs, alleviating some of the pressure on the US taxpayer. It’s a fair enough aim too and Germany at least has already agreed to it just not done very much about it. South Korea has now agreed and looks like they will in fact do it.…

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If Higher Taxes Are Necessary To Fund Government Then There’s No Austerity, Is There?

The IFS tells us that higher taxes will be necessary if we’re to end this unceasing austerity the public finances are all suffering from. But if that’s true then we can’t actually be having any austerity, can we? This is true of either meaning of austerity that we might use. The economic one, talking about the size of the deficit, or the one more common among screaming harpies, the idea that there’s just not enough government going on.…

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Willy Hutton Really Doesn’t Grasp The Economics And Politics Thing

Regular readers will know I’ve not a great deal of admiration for the economic ability of Will Hutton. He’s the one trick, that Britain would be a better place if everyone damn well did what Will Hutton told them to. Beyond that there’s nothing to his shtick. But then that is Kip Esquire’s Law, isn’t it, that every planner envisions themselves as being the one doing the planning.

A useful example of this lack of nous over matters economic is this:

For there is no Brexit dividend, as the shamelessly economically ignorant Jacob Rees-Mogg keeps claiming.

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Polly Toynbee and Economics – Never The Twain Shall Meet

For many years I’ve been observing that Polly Toynbee doesn’t seem to be quite up with the basics of economics. Nowt has changed just recently. She’s still not grasped that current government spending is higher, as a proportion of the economy, than it ever was under her one-eyed Viking, Gordon Brown. Well, OK, many don’t understand that given all the screaming about austerity but a columnist in a national newspaper should be able to grasp the basics still, no?…

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