Which is why there is no right or wrong in economics only priorities.
Definitely.
As a society we have to choose which metrics we want to improve and let's face it there are plenty of them.
But with so much manipulation and agenda of statistics it's very difficult to find the right path.
For instance I wouldn't believe a word the OBR ever said. Yet the establishment use it all the time. It's handy to keep a lid on public finances for capitalism to thrive. But it's not so great for the poor and wider society.
If economics is so complicated that people who study it all their lives can’t agree, how come so many armchair pundits think they know the real answers
I think that applies to lots of things especially in politics.
But also people look at what's happening now and perhaps start to realise that the faith they put in the system isn't delivering their needs.
More and more middle class about to take a hit. They've not really known a downturn where they feel this sort of pinch. Lots of my friends who fit into this category believed that capitalism has served them well especially with cheap debt and some decent wages. But now they're expenses are getting hit in a way they didn't see coming. Very much a product of the system they endorsed.
And what happens if the housing market takes a hit ? - many a wealth will be destroyed for this particular group who built their existing on rising house prices.
The middle classes make up a lot of useful voters. This will be key to Tory handouts.
To me, it's all ready part of the fabric the working class get shafted but when the system works against its supporters then things will crumble.
To what extent currently I don't know. Depends on what governments do to fix things.
Market ain't fixing itself that's for sure.
One other separate point.
Macro and microeconomics are on a bit of a collision course at the moment.
That's an interesting scenario. I think the person in the armchair has good cause to comment.
Which is why there is no right or wrong in economics only priorities.
That's a better way of saying what I was thinking yes.
The system is about capital exploiting labour. Economics isn't neutral, you have to take a side in your perspective.
Economics is the one-page instruction manual for piloting a glider with a joystick made out of ham.
Levers such as interest rate changes are only slightly effective in normal conditions, where you can accept the lag between policy change and outcome. In the current supply-side storm, I doubt you will even notice the inputs.
It's not a question of removing discretionary spending from the economy, I think we are heading for a situation where many middle-income households will just choose where they default on existing debt - do they stop paying credit card bills, energy bills, other loans or mortgages? Raising interest rates just tips more households into multiple defaults.
When, in January, people en masse stop paying their energy bills, will the government step in to prevent disconnections, and prop up the providers?
