Wednesday, 21 September 2011

£5bn 'spending boost'

BBC News reports:

Ministers are discussing how to inject up to £5bn into the economy without abandoning their deficit reduction strategy, the BBC understands.

Some Cabinet members believe Chancellor George Osborne could raise capital spending on infrastructure, BBC political editor Nick Robinson says.

The government has faced calls for a "Plan B" on the economy amid flagging growth and rising unemployment.

The Treasury previously said any change in strategy would risk its credibility.

The news emerged as the International Monetary Fund said world leaders must take strong action to prevent the risk of a double-dip recession.

It's sad that such Keynesian quackery lives on.

The proposed "spending on infrastructure" might not be quite as wasteful as digging ditches and filling them back in again, but it's not going to be as efficient or effective as spending by those from whom the money was taken.

The best thing the government can do to improve the economy is to step back:
  • simplify taxes, and reduce the rates;
  • cut red tape;
  • stop wasting money on windmills;
  • end needless wars;
  • eliminate disincentives for job-seekers and employers;
  • scrap the quangos;
  • stop nannying;
  • end the war on drugs;
  • generally do less.

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