Is the underlying problem a lack of productivity growth? or there a more fundamental issue with the economic system we are operating under? - that has resulted in a global environmental and social polycrisis - climate breakdown, biodiversity crisis, exceeding at least 6 of 9 planetary thresholds, planetary resource use overshoot, increasing inequality, and such like. All of which requires an economy of enough, not more growth for developed nations. This coalition government is heading down the wrong path, following false economic theories.
(Following on from her statements about public finances being like household finances, this magic money tree statement from the Minster of Finance just confirms that she has no idea how a sovereign currency issuing economy works.)
However I believe the world economies will never be the same again. Any government still hoping to replicate the false, tired old economic theories of yesterday are sure to fail.
Our planet warming issues will no doubt ensure a more simplistic outlook.
Economies are spontaneous emerging systems resulting from billions of decisions made by human beings. As Hayek notes, catallaxy is probably a better word than economy.
The sheer arrogance of any politician or other State agent claiming the ability to "build" an economy is laughable.
Moreover, Mr Luxon is economically illiterate at the very basic level - for example, he has no idea that forcibly lowering interest rates is inherently inflationary. This is not to mention the fact that Keynesianism (and all its offshoots) has not worked to build real wealth, does not work to build real wealth and will not work to build real wealth.
Austerity will continue until morale improves
Is the underlying problem a lack of productivity growth? or there a more fundamental issue with the economic system we are operating under? - that has resulted in a global environmental and social polycrisis - climate breakdown, biodiversity crisis, exceeding at least 6 of 9 planetary thresholds, planetary resource use overshoot, increasing inequality, and such like. All of which requires an economy of enough, not more growth for developed nations. This coalition government is heading down the wrong path, following false economic theories.
(Following on from her statements about public finances being like household finances, this magic money tree statement from the Minster of Finance just confirms that she has no idea how a sovereign currency issuing economy works.)
Yes, good point, thanks Andrew. I confined myself there to conventional thinking about growth, but it is physically unsustainable, I agree.
Another timely, thoughtful post Grant.
However I believe the world economies will never be the same again. Any government still hoping to replicate the false, tired old economic theories of yesterday are sure to fail.
Our planet warming issues will no doubt ensure a more simplistic outlook.
Fair point, thanks Jim. I agree that a fundamental rethink is warranted.
Economies are spontaneous emerging systems resulting from billions of decisions made by human beings. As Hayek notes, catallaxy is probably a better word than economy.
The sheer arrogance of any politician or other State agent claiming the ability to "build" an economy is laughable.
Moreover, Mr Luxon is economically illiterate at the very basic level - for example, he has no idea that forcibly lowering interest rates is inherently inflationary. This is not to mention the fact that Keynesianism (and all its offshoots) has not worked to build real wealth, does not work to build real wealth and will not work to build real wealth.
Fair point, thanks Andrew. Your comment nicely contrasts with others. What force was used to lower interest rates though?