German ridicule for UK policies

[dipsydoodle]

The German finance minister has launched an outspoken attack on the UK government's plans to help pull Britain out of the economic downturn.

In an unusual breach of standard diplomacy, Peer Steinbruck attacked the UK's decision to cut VAT and raise the national debt to record levels.

Mr Steinbruck said the UK's switch from financial prudence to heavy borrowing was both "crass" and "breathtaking".

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"Are you really going to buy a DVD player because it now costs £39.10 instead of £39.90?" he said.

http://news.bbc.co.uk/1/hi/business/7776462.stm

[Albus]

1. pains me to say it but

he's absolutely right.

How many bankrupts have ever borrowed themselves out of trouble?

[non sociopath skin]

2. I'm no economist but I can't see how everybody buying more stuff they don't really need ...

... with money they haven't really got is going to solve anything.

But what do I know?

The Skin

[Nihil]

3. Not "solve", just "delay" long enough ...

... for the Important People to get their stash in something (or some place)
that will weather the coming storm ... they just need your support for a little
longer ... so Citizen, do your duty: go out and buy!

:yoiks:

[Anarcho-Socialist]

4. "How many bankrupts have ever borrowed themselves out of trouble?"

Public borrowing is not in of itself, wrong.

Peer Steinbruck is wrong on the issue. While it is questionable what effect a 2.5% sales tax cut will have on generating economic growth, I would say that what is faulty with the UK government's approach is that the fiscal stimulus is not close enough to what is required.

Borrowing lots of money to invest in science, technology, healthcare, education, housing, research and development would be highly beneficial for the public at large, even if it takes a while for GDP/debt ratio to come down. For decades, Post-war Europe benefited from the legacies of prodigious scientific and technical developments that were instigated in WW2 away from the military arena.

Contrary to Peer Steinbruck's views, the UK government is not "over spending" on the recovery, but is not spending enough, and is likely not spending it in the right areas. The UK is also nowhere near to bankruptcy.

While I'll take Brown's "crass Keynesianism" over Steinbruck's monetarism any day, I fear it will be a while longer before the Labour government really grasps the task at hand. Though Labour are at least ahead of the Tories in this regard.

[Albus]

5. Be interesting to see who's proved right

History will judge them I suppose.

[T_i_B]

6. Good post about Tory reaction to this from a LibDem blog

http://www.theliberati.net/quaequamblog/2008/12/12/whatever-happened-to-dignity-in-politics/

No, this isn’t an attack on Lembit Opik’s decision to resume his column for the Daily Sport.

Instead it is to draw your attention to an email I’ve just been sent by the Conservatives. They are still jumping with joy about the fact that the pro-Euro, economically leftwing Peer Steinbruck made some critical comments about Brown’s economic policy, stretching the idea of “my enemy’s enemy is my friend” to breaking point. And as an added bonus, they are offering people free ringtones of Gordon Brown’s “saving the world” gaffe. I followed that link. It took me to a website called myxer.com. It suggests that the sort of person who would like this ringtone would also like “yous a hoe” (I assume this isn’t a reference to the correct application of garden tools) and “N.I.G.G.E.R..”

It this really what passes for Tory opposition these days? Uncritically praising any criticism of the government, regardless of the source, and peddling ringtones? Credit must go to Jeremy Hunt - a week into the job as the new Tory online campaign chief, he has taken a clear aim for the gutter and hit the ballseye.

We all like a joke, but most of us know where the joke ends and continuing to go on about it just starts looking embarrassing and undignified. You would have thought that CCHQ would have learned the lessons of the Crewe and Nantwich by-election, but clearly not.

[non sociopath skin]

7. Anyone in any doubt about how "New" Dave's Conservatives are ...

... needs only to pop in at any Tory-supporting blog or website.

Monetarist solutions. Friedman was right. Subsidise Small Businesses. Trickle Down. Bring Back Thatcher. Taxes Strangling Wealth Creation. Cheaper Petrol. More Cars. More Roads. No Speed Limits. No Congestion Charge. Down with Big Government. Enterprise Culture. No Nanny State. Immigrants. Asylum Seekers. Megalomaniac European Bureaucrats. Bans on Bananas. Metric Martyrs. Muslim Terrorists. Single Mothers. Sink Estate Chavs. Idle Scroungers on Benefits. Evil Unions. Trendy Lefty Teachers and Social Workers. Bring Back Grammar Schools. Council Subsidies to Queers and Blacks. Hug a Soldier. Flog a Hoodie. Fly the Flag. I'm Not Politically Correct. Back to Basics. Death of Christmas. Climate Change Phonies.

Not a spot changed.

The Skin

[Albus]

8. Sounds like the Daily Mail staff canteen

[non sociopath skin]

9. Daily Mail staff are that moderate?

The Skin