Friday, June 12, 2015
Britian's Leadership Makes Bold Effort To Solve The Wrong Economic Problem
Britain's economy is not in good shape. The unemployment rate is not bad, but nobody has offered an explanation, or a solution, for the decline in productivity. An economy with declining productivity is not a good thing. The conservative government, with the help of a compliant media, has decided that government debt is the problem that must be solved. Paul Krugman argues that there is little reason to believe that government debt is, or has been, a serious problem in Britain. His argument will fall on deaf ears in Britain. There is no argument that makes more sense to serious people than the problem of debt. It also provides an excuse for the government to make large cuts in social welfare programs and to avoid doing what is needed to restore productivity growth.