Tuesday, 3 August 2010

Take money out of the economy and it will shrink

This from the New Statesman: Growth of 1.1 per cent in the second quarter is likely to be as good as it gets for Osborne in 2010. Britain, like the rest of the world, can no longer rely on the US to act as the buyer of last resort.

Bad news for Camerclegg's claims then, I do wonder how these politicians can have such a poor grasp of economics.If you take money out of the economy it is likely to shrink...

Understanding economics is a must for all politicians and especially so for green ones. That doesn't mean that we need to accept all of the received wisdom. For example growth is not usually good. Growth is fine in some sectors but not in all and certainly simply going for growth will lead to collapse of social and environmental systems.