Saturday, 7 February 2009

Guardian writer admits bailout won't work.

Listening to the BBC over the last few weeks, all the pundits told me that Gordon Brown was a Man of Steel whose bailout package put into practice what the economist J.M. Keynes had preached. However, someone at the Guardian newspaper appears to have actually read Keynes.

This fellow has enough common sense to figure out that Keynesian spending programs only work in countries that accumulated surpluses during the boom years. Doh!

Surplus? Doesn't sound like Britain, does it? Sounds more like China.

http://www.guardian.co.uk/business/dan-roberts-on-business-blog/interactive/2009/jan/29/financial-pyramid

Is it my imagination or has this Guardian writer been reading Chicago School economics?

2 comments:

Gandhi said...

Precisely. It's gotten a little tedious listening to wise-guys popping-up all over the place pointing out how Keynesian economics is just plain nonsense... well the correct analogy/situation for a Keynesian injection would be to release some funds in the bad times which you have SAVED from the good times! It ain't Keynes it's just common sense... though it would be better if we were all responsible (bankers et al) and didn't get to the stage where only the government has money to inject; which of course it doesn't. Oh God were f*cked!

sound money man said...

Indeed. We're screwed if we don't go back to work (manufacturing). There is no way around that.