Reply to post: Credit crunch

Hey, folks. Meet the economics 'genius' behind Jeremy Corbyn

Alan Brown Silver badge

Credit crunch

"Iin the mean time makes a pig's ear of the economy as a whole by neglecting, if not asset-stripping, the wealth generating part of the economy."

I seem to recall that the conservatives did that in the 1960s too. The anecdote is that the incoming Labour govt in 1964(?) found a handwritten note saying "Sorry for the mess"

it's easily arguable that the Tories have been doing precisely the same thing in the last 5 years. Assett stripping is an easy way to make it look like you're generating a short term profit, but sooner or later the system collapses.

The problem is that whilst politicians may _think_ they dictate policy, the same people are in the civil service and whilst the politicians don't have any economics qualifications (and are therefore dangerous), the civil servants do, but it's all paper qualifications (which makes them even more dangerous).

Take a close look at the people in power. They're mostly not particularly successful at anything outside politics, except the ex-lawyers (if they were, they wouldn't have gone into politics).

Governments work best for the country when they don't have enough of a majority to be able to ram things through without any meaningful opposition. _Any_ party which has a large majority is dangerous because they're all ideologically driven. At least if the majority is slim, they have to negotiate (unless some oppostion leader who's clearly sitting on the wrong side of the house tells her members to abstain on everything) and that usually results in the more extremist policies being toned down.

There's nothing wrong with mild socialism, or investing for the future. Sucessive governments of all stripes have bought votes by passing the bills to the grandchildren and it's entirely possible the grandchildren will refuse to pay them. The single biggest government cost liability is _pensions_ and successive administrations have been systematically underinvesting in them for decades. Whilst that was tenable when the ratio of taxpayers to pensioners was high, over the next 15-20 years it will get turned on its head - and the baby boomers (now pensioners) who have been handed everything on a plate will whine loudly that they're not getting the pensions they think they deserve, effectively saying "sod you" to their children and grandchildren.

Tim's greatest fear (and that of most libertarians) is that the young get motivated enough to actually get out and vote.

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