Daily Archives: December 9, 2014

European Semester 2015: a new momentum for jobs, growth and investment – Employment, Social Affairs & Inclusion – European Commission

December 9, 2014 By in Austerity, Business Administration, Central banks, Central Government, Defense Policy, Democracy, Energy Policy, Euro Crisis, Fiscal Policy, Foreign Policy, Growth, Immigration, Keynesian, Monetary Policy, People, Politics Tags: , , , , , , , , , Leave a comment

I welcome this article from the European Commission. It’s worth a read. Check it out!

via European Semester 2015: a new momentum for jobs, growth and investment – Employment, Social Affairs & Inclusion – European Commission.

Personally, I fear that the European Commission is doing ‘too little’ and it’s ‘too late’. Under the previous incumbents at the European Commission, there was political agenda of ‘too much austerity for too long’. With Southern Europe brought to its knees by these policies, there was no confidence in the EU. When France favored ‘less austerity’, it brought a collision course with Germany. Now, the newly elected European Commission has a twin task of both structural reform AND economic growth.

Whilst I still have deep misgivings about the European bureaucracy, I commend the new leadership at the European Commission for facing the challenge. However, I would still like to see a fast-track approach to kick-start Europe’s return to growth.

Thoughts?

mainly macro: The imaginary world of small state people – Simon Wren-Lewis

December 9, 2014 By in Austerity, Business Administration, Fiscal Policy, George Osborne, Growth, Neoliberal, People, Politics Tags: , , , , , , , , , 1 Comment

This blog from leading Oxford economist, Simon Wren-Lewis is well worth a read. Check it out!

via mainly macro: The imaginary world of small state people.

Personally, in terms of political ideology, I tend to favor a small-state, and take exception to some of the Wren-Lewis’ argument. I fear that he has missed the point with regard to George Osborne, the UK Chancellor of the Exchequer.

For me, it is better to separate the politics from the economic evidence.

I agree with Wren-Lewis that in terms of strictly economic management, Osborne’s record has been seriously ineffective. In particular, I agree that Osborne’s austerity has been too deep for too long. So I endorse the Wren-Lewis argument about the opportunity cost – under Osborne economic growth has been seriously curtailed.

From the beginning, Osborne’s economic credentials have been questionable. Personally, I believe that Osborne has always been long on political dogma and short on economic argument.

To conclude, I favor small-government but believe that Osborne has precipitated an omni-shambles of savage cuts to public sector services. This blog has repeatedly argued that the Government has not taken a strategic approach to public sector cost reduction. The UK public need to wake-up to the evidence that the UK is only 40% along the journey of ten years of cost cuts.

For me, there would only be one thing worse than Osborne as Chancellor and that would be Osborne as Prime Minister.

Thoughts?