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UK in double-dip recession

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Original post by prog2djent

I personally think the Mises Institute, Peter Schiff and Ron Paul have been given far too much attention and credit for their so-called economic wisdom.


These guys conclusions are in large part correct, their analysis on the other hand is not. They are basically right that the problem is too much credit in the economy. However their faulty analysis leads them to suicidal policy subscriptions.
Original post by FDR
At the moment, the government is still spending lots because of so called 'automatic stabilisers' like unemployment benefits, and as a huge amount of people are out of work, it means that a lot is being spent on these benefits.

That is not a fact really. Automatic stabilizers are absolute nonsense in reality. Most government spending does not go in welfare to those out of work, JSA is absolute pittance compared to other government spending. It goes on things like the NHS, schools, military, pensions, benefits to the middle classes etc. That kind of spending does not change with unemployment levels. Automatic stabilizers are a myth for the most part.

The government is still spending loads because most government spending redistributes towards the middle. And the middle is who votes you into to power.
(edited 11 years ago)

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