Saturday, 7 March 2009

'Quantitative easing' - an important thought:

Here is my excellent green economist colleague Molly Scott Cato, on 'quantitative easing':
 
'In Japan the government sent money created in this way to citizens, who are likely to spend it and stimulate the economy directly. Here the government buys the worthless assets of bankrupt financial institutions. Since UK plc is not in its entirety worth even a fraction of the debts that were incurred during the decade of asset bingeing this is a policy of despair that cannot work and will do nothing to help us avoid the looming Depression.
 
'The Green Party has had a policy of Citizens' Income for about 30 years. This would be an ideal way to put more money into the economy, especially since the poorest would benefit most and are the most likely to spend rather than saving. Money created by the public should be invested for the public good. Other alternatives would be spend the money on building hospitals, school and our rail network.
 
'Let's not be distracted by the bleating about controlling the outrages of overpaid bankers. What we are witnessing in our economy this week is a massive transfer of wealth to those who least deserve it.'
 

2 Comments:

Blogger DocRichard said...

Hi Rupert
I agree, but what is holding CI back is the central objection, based on a misperception of the human condition : "It is a liggers charter" "You cannot give something for nothing". (No? What about the bailouts then?). The effective way around this objection is to introduce it via a Green Wage Subsidy.
http://www.greenhealth.org.uk/GreenWageSubsidy.htm
Exactly what is needed in the present economic situation.

Keep up the good work
Richard

8 March 2009 at 12:27  
Blogger Rupert said...

Agreed 100%, Richard.

9 March 2009 at 11:09  

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29.
Here is my excellent green economist colleague Molly Scott Cato, on 'quantitative easing':
 
'In Japan the government sent money created in this way to citizens, who are likely to spend it and stimulate the economy directly. Here the government buys the worthless assets of bankrupt financial institutions. Since UK plc is not in its entirety worth even a fraction of the debts that were incurred during the decade of asset bingeing this is a policy of despair that cannot work and will do nothing to help us avoid the looming Depression.
 
'The Green Party has had a policy of Citizens' Income for about 30 years. This would be an ideal way to put more money into the economy, especially since the poorest would benefit most and are the most likely to spend rather than saving. Money created by the public should be invested for the public good. Other alternatives would be spend the money on building hospitals, school and our rail network.
 
'Let's not be distracted by the bleating about controlling the outrages of overpaid bankers. What we are witnessing in our economy this week is a massive transfer of wealth to those who least deserve it.'
 
30. 31. 32.