Monday, 7 May 2012

An alternative economic policy?

So the EuroZone has been thrown into turmoil because Sarkozy has lost the French election, and Hollande has said that he plans to spend his way out of recession.  This harks back to a previous post, , that the way to stimulate the economy, according to John Maynard Keynes, was to spend on infra-structure projects.  Gordon Brown thought the way was to invest in the banks, who would then lend it to business to kick-start the economy, and we all know what happened there.  The banks re-capitalised, and we went into a double dip recession. 
Today we also read that a report has come out that David Cameron's Big Society is not working, as people are not buying into it, and charity funding has been cut. 
Another report says that David Cameron has 'heard the message' from the recent local elections.
Can you spot the pattern?  With less money in the economy, the Big Society idea is that people will 'rally round' and take up the slack.  It is no surprise that it is not, people are hurting!  Thousands of public sector jobs have been cut and people are struggling!  This is the price that people are paying for the massive cock-up with the economy, but the top 1% are protected with their off-shore investments, etc.
If  Hollande is successful, and he spends his way to economic success, voices will then start to be raised, and ask the question, "Why was it not tried her?"

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