Wednesday, 25 August 2010

Well, I'm very confused Ted

Seems that coalition 'partner' Nick Clegg is angry with the suggestion that the 'progressive coalition' budget is going to lead to widening income disparity:

'Speaking this afternoon, Clegg said: "This IFS analysis is, by definition, partial. It does not include the things we want to do to get people off benefits and into work.'

The poor simpletons, Nick. You should phone the IFS up to explain to them that there are lots of imaginary people in your head who are going to get jobs because you 'want' them to. You can explain that the not-so-imaginary people who are certainly going to be made redundant by the reforms will also find work because you 'want' them to and everyone will be happy and drink lemonade with bunnies in the sunshine because you 'want' that to happen.

That is the state of modern Britain. The idea that the invisible hand won't find work for people seems to be a thought crime.

1 comment:

  1. My guess is if there is eventually an increase in employment, it will mostly be in the very low-wage sectors of the economy. But neoliberals will be trumpeting how they overcame yet another recession and delivered employment to the masses.

    What is really scary about all of this is that unlike in the 1930s, when corporations had some ties to their respective nation-states, today's multinational corporations are more willing to let workers in the First World countries sink, since they can now sell their goods and services to rising middle-classes in places like India and China.

    I think this trend might partially explain why there has not been a muscular Left Keynesian response to the current crisis, and only a Right Keynesian response to help the bankers, for example. During the post-war consensus era, the elites in the West were enlightened enough to known that firms needed well-paid workers to purchase the economy's economic output and clear the markets. Now, it seems we are reverting back to the older system of paying people like paupers and expecting them to spend like princes, although now the corporations may just say the heck with the workers in the First World and look for greener pastures elsewhere.

    While I am not against Third World development, I don’t think it necessarily should or must be at the expense of workers in the First Word.