“FINANCIAL TIMES”: NEW SAMUEL BRITTAN ARTICLE SEPTEMBER 10 2010

September 11, 2010 at 9:33 am | Posted in Economics, Financial, Research, United Kingdom | Leave a comment

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New Samuel Brittan article:

The secret of Osborne’s popularity

Andrew Heavens (andrew.heavens@gmail.com)

Sat 9/11/10

The Financial Times 10/09/10

The secret of Osborne’s popularity

I would suggest that there is something more specific to the chancellor’s popularity. Many people have got it into their heads that the government is spending £4 for every £3 it is receiving in revenue – or some such ratio. They think that if they were in such a situation they would be heading straight for bankruptcy. Such simple arguments strike a chord in the way that earlier Budget presentations in terms of inflationary or deflationary pressure, or even the balance of payments, never did. There is nothing new in this popular acceptance of the “fallacy of composition”.

In 1931, as the Great Depression was gathering pace, a near-grand coalition of Conservative, Labour and Liberal ministers won an overwhelming victory at a general election on a promise to slash the Budget deficit.

Dissenting Labour and Liberal MPs were reduced to a rump. In his excellent Bloomberg lecture on August 27, Ed Balls, the Labour political economist and leadership contender, gave a better concise explanation of the fallacy of Osbornomics than any I have read.
http://samuelbrittan.us1.list-manage.com/track/click?u=f3d103dd062d8e2eb1704a4f9&id=7c490b7e0a&e=66c71111bc

New Samuel Brittan article: The secret of Osborne’s popularity

Andrew Heavens (andrew.heavens@gmail.com)

http://samuelbrittan.us1.list-manage.com/track/click?u=f3d103dd062d8e2eb1704a4f9&id=7c490b7e0a&e=66c71111bc

The Financial Times 10/09/10

Sat 9/11/10

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