Fancy doing some research into which policies are the best for managing countries out of recessions, Stanley? I think it's clear that governments in themselves are not necessarily or exclusively to blame for recessions, but presumably there are effective remedies and ineffective remedies for them. I don't mind if you don't want to take up the task - I can't be bothered either.
You ****er. I don't have an answer of course.
But to show the depths that I have sunk to, I have really have been looking into stuff related to this today. Actually I had to, to explain to some of my American colleagues why Japan, my company's second biggest market, is so counter intuitive. I won't bore you with the Japanese conclusions.
Forgive the length of this, I'm using the post to think it through for myself. For us, as always, it's a balancing act. The economy, in UK government terms, is essentially about national debt and government surpIus/deficit. These are the things which they think they can influence/manage. I don't think many people realise how much economies depend on the whim of market 'confidence'. With 'confidence' you can borrow cash on decent terms and keep on investing/spending. Without it you are ****ed (see Greece, UK after ERM fiasco etc). Inflation starts to rise, with it interest rates, everything gets skewed, confidence reduces, Governments can only borrow to keep services going on shorter and worse terms, massive downward spiral.
The Japanese have been in recession for 20 plus years, they have a national debt way over 200%, yet they retain 'confidence'. That's because most of their debt is owed to themselves, due to their habit of saving. Guess what, although we don't save, 65% of our national debt (80 - 100% of our GDP, depending on who you ask) is held in Britain too. 25% of it is owed to the Bank of England, which is a nationalised institution, or was last time I looked. So the Bank, in it's 'quantitative easing' strategy, has been buying Government Bonds/Gilts, which have been contributing to the Governments spending, but it's also kept inflation and interest rates down. Labour had no choice but to borrow hugely to keep the financial system afloat in 2008-10, otherwise we would have gone completely belly up. If the Tories had come straight in with austerity I genuinely believe it would have been much, much worse.
So we are doing ok, the debt and annual deficit numbers are just numbers. Bit of a blip getting our credit rating downgraded a notch but hey ho. So why are the Tories, Labour and the Lib Dems so obsessed with reducing the deficit and thereby reducing the need to borrow? Firstly it would help if they, Cameron in particular, would get the vocab right, he always mixes debt and deficit up. There is still a lingering whiff of the sulphur left by Thatcher, who kidded us that national economics are the same as household economics. But they are not. If our credit card spending gets out of hand we can calm it down without affecting our income. If the Government reduces its spending it also risks reducing its income - this 'living within our means' stuff is just irrelevant in the terms in which it is presented. This country has only been in surplus for about 4 of the last 40 years (3 of them under Labour). National debt in the UK was 200% of GDP in the early 50's. Who cares? I don't get this obsession. The parties are playing round the margins on this I feel.
What I really can't stand though is this slavery to 'market confidence' something which doesn't have a central nervous system, let alone a brain or a conscience. Just takes one bloke to get out of bed the wrong side and that's it. Nobody can control it, because it's a piece of collective imagination. But we won't change that with elections, we'll need a revolution, or more likely collapse of the whole system. Due to lack of confidence, probably.
I see your squeeze Leanne is back on telly. Jo Brand was on for Labour earlier, saying we must vote for them, otherwise we'll 'lose the NHS as we know it'. Why does she want me to vote Tory?
**** me, I've written an essay. Sorry.