tag:blogger.com,1999:blog-532540929589136198.post1865765201618587434..comments2023-10-23T08:31:46.168-07:00Comments on LEAP economics: Quantitative Easing isn’t workingUnknownnoreply@blogger.comBlogger2125tag:blogger.com,1999:blog-532540929589136198.post-69054262939352710842012-04-06T10:09:38.074-07:002012-04-06T10:09:38.074-07:00Thanks Alex.You're right about the 1930s, but ...Thanks Alex.<br><br>You're right about the 1930s, but it took a few years until the economic situation became severe before they were forced to change course.<br><br>In 1929 and 1930 there was mass opposition to the Labour government's economic policies - both internally from the likes of Mosley and Maxton, the ILP and affiliated unions.<br><br>Austerity failed. Unemployment increased massively. The solution was even sharper cuts in 1931 and the forming of the national govt which slashed public spending and cut public sector pay. <br><br>By late 1931 though the UK was forced to abandon the gold standard, devalue and slash interest rates. But real investment-based job-creating stimulus didn't occur until the mid-30s.<br><br>Ultimately Osborne will be forced to change course. The question is how bad will it get first.Andrewhttp://www.blogger.com/profile/09829335430135810050noreply@blogger.comtag:blogger.com,1999:blog-532540929589136198.post-4263151852607119872012-04-06T02:50:05.592-07:002012-04-06T02:50:05.592-07:00Good, clear article Andrew. It is a real indictmen...Good, clear article Andrew. It is a real indictment of mass media economics journalists that Osbornomics has been allowed to propagate the myth of 'crowding out' for so long without ANY theoretical or empirical basis WHATSOEVER!<br><br>I seem to recall that Keith Ewing points out that the need for demand stimulus from 1931 led the inter-war National and Tory governments under Stanley Baldwin to pass the Cotton Manufacturing Industry (Temporary Provisions) Act (1934) and the Road Haulage Wages Act (1938), which required employers to reach 'sector-wide' wage agreements. This had the effect of pushing up wages in a manner that was 'non-competitive' between different private firms in the sector and created Keynesian demand stimulus. Osbornomics is to the right of Tory 1930s laissez faire economics, which at least recognised reality, rather than propagating fictions such as 'crowding out'.Alex Gordonhttp://www.blogger.com/profile/08679174850402606876noreply@blogger.com