tag:blogger.com,1999:blog-2546602206734889307.post5184896970647459703..comments2024-03-28T04:29:22.717+00:00Comments on mainly macro: Letter wars, and how policy is madeMainly Macrohttp://www.blogger.com/profile/09984575852247982901noreply@blogger.comBlogger44125tag:blogger.com,1999:blog-2546602206734889307.post-820084061868007422015-09-07T08:55:44.455+00:002015-09-07T08:55:44.455+00:00Just cut VAT and see if we still have a problem.Just cut VAT and see if we still have a problem.StuartPhttps://www.blogger.com/profile/13748038209546648459noreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-6719272077274749242015-09-06T23:43:43.260+00:002015-09-06T23:43:43.260+00:00But Corbyn's already overestimating tax revenu...But Corbyn's already overestimating tax revenue for specific plans (raising top rate of tax) and dangling prospects of big sums of free money from uncollected tax and business tax allowances.<br /><br />I think that's a very bad sign.<br /><br />If he were to be running on middle class tax rises, I'd respect him as principled and telling it how it is. Some tax rises starting fairly low down would pay for stuff like the costs of the much older population.<br /><br />We've had nothing like that. It's money rustled up by going after other people. I think that goes nowhere, and his spending plans go nowhere.<br /><br />Ed Miliband, btw, was not very austere. Too much, sure. But there's no more a huge gulf with Corbyn than there was with Sturgeon. Tubby Isaacsnoreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-19539088651579714292015-09-06T23:37:58.870+00:002015-09-06T23:37:58.870+00:00George,
East Coast's return to the Treasury w...George,<br /><br />East Coast's return to the Treasury was much smaller than what the new franchisee has committed to pay to the Treasury. <br /> <br />It's a fairly effective system at earning money for the government to reinvest in rail, with the government off the hook for the fare increases that pay for it. <br /><br />It could doubtless be better, but equally it could be worse. For instance the government took over some procurement (from rolling stock companies) and made an utter pig's ear of it.<br /><br />Tubby Isaacsnoreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-13982637409841501572015-09-06T21:28:32.401+00:002015-09-06T21:28:32.401+00:00Metatone
Who?
Give me the details of who you are...Metatone<br /><br />Who?<br /><br />Give me the details of who you are claiming says this, and I will review it.<br /><br />I can see the case for re-nationalising water. But why rail? The usual reasons given are just daft.<br /><br />Gastro<br /><br />And the bidder for the franchise had to match or beat the return to the government from network rail running the franchise. Which is how competition works, Maximises returns for all of us. <br /><br />Happy days.SpinningHugonoreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-66873158404489995772015-09-06T18:43:04.472+00:002015-09-06T18:43:04.472+00:00In a tweet that was retweeted by Peter Doyle (for ...In a tweet that was retweeted by Peter Doyle (for some reason I can't find it any more), Mr Yates sent a link to the letter and called corbynomics "reckless rubbish". I think whatever the reservations one may have about "corbynomics" this kind of language betrays the real way of thinking of the authors. Quite different from the language used in the FT "Sir, ...", "not thought through" ...David Belayhttps://www.blogger.com/profile/18104613548562361802noreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-76415317196139005442015-09-06T17:43:11.278+00:002015-09-06T17:43:11.278+00:00He also ignores the idea of public transport as a ...He also ignores the idea of public transport as a public good. If commuters did not get a "free lunch", i.e. paid the full rate - well they wouldn't, would they, they'd take the car instead - with all the associated costs that that would imply.gastro georgenoreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-35505200971852531942015-09-06T15:00:40.576+00:002015-09-06T15:00:40.576+00:00The whole thing is very depressing.It's bad en...The whole thing is very depressing.It's bad enough that the mechanics of 'policy making' are as you imply but more depressing is the apparent inabiility of the letter writers to make clear exactly what they want to say, Would their efforts pass muster in an undergraduate tutorial? Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-39265658316655859302015-09-06T11:46:10.909+00:002015-09-06T11:46:10.909+00:00Or Bill Mitachell? Randall Wray? Steve Keen? There...Or Bill Mitachell? Randall Wray? Steve Keen? There's a whole host of economists (SWL too) to choose from...But in reality they all agree...end austerity, spend some money, see what happens.Fdangohttps://www.blogger.com/profile/05023074290808502785noreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-36058558842237049422015-09-06T08:06:13.379+00:002015-09-06T08:06:13.379+00:00Hugo, you don't appear to know much about the ...Hugo, you don't appear to know much about the details of the rail system or indeed transport policy. Many of those who do, have supported further moves to nationalisation. They may be wrong, but your conceit that the idea is beyond the pale suggests that you've fallen into the "generalist" trap where you believe your abstract principles apply no matter what the situation. Indeed, above all, it suggest you have not examined the issue.Metatonenoreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-43911729843306036942015-09-05T19:20:48.115+00:002015-09-05T19:20:48.115+00:00You miss my point. Users of the East Coast line t...You miss my point. Users of the East Coast line that was briefly "nationalised" <a href="http://www.theguardian.com/uk-news/2014/sep/09/state-owned-east-coast-rail-franchise-paid-225m-pounds-treasury-still-faces-privatisation" rel="nofollow">gave them a top satisfaction rate, while running the service more economically than the previous private owners.</a>gastro georgenoreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-69555190023969860652015-09-05T18:20:23.370+00:002015-09-05T18:20:23.370+00:00Just use fiscal policy. Cuts to NI and VAT.Just use fiscal policy. Cuts to NI and VAT.Randomhttps://www.blogger.com/profile/04445772572707818311noreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-58093154494835518772015-09-05T11:10:00.381+00:002015-09-05T11:10:00.381+00:00Could I also include you in my Mosler Challenge, S...Could I also include you in my Mosler Challenge, Simon? I know you did not sign the letter, but on their "risk to financial credibility" point you seem to be in agreement.<br /><br />https://radicaleconomicthought.wordpress.com/2015/09/05/the-mosler-challenge-to-55-economists/Matt Usselmannhttp://radicaleconomicthought.wordpress.comnoreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-55331826432392977752015-09-04T23:36:30.273+00:002015-09-04T23:36:30.273+00:00Who pay below cost.
The desire for nationalisatio...Who pay below cost.<br /><br />The desire for nationalisation is just people wanting a free lunch.SpinningHugonoreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-23048549274874197832015-09-04T21:31:47.841+00:002015-09-04T21:31:47.841+00:00Letters are good, if discussion in detail extends ...Letters are good, if discussion in detail extends to blogs.<br /><br />Blogs are perfect forum to hone policy proposals, if the authors of the proposals are open-minded. In the end politicians have to decide.<br /><br />Policies also have to be election winners. The option of austerity light, based on higher deficits has now been rejected twice by the voters, yet that is what seems economists still want to sell.<br /><br />Until Corbyn comes along and picks out something more sensible. Traditional economists might say it is populism, but MMT has never been seriously questioned, and proposals like PQE base much of their underpinning on MMT. Corbynomics is successful and will win Corbyn the election.<br /><br />So radical ideas win the leadership election, and might even win in 2020. As long as traditional economists do not undermine the radicalism (it wins elections, remember), they should be welcome for their advice. <br /><br />Matt Usselmannhttp://radicaleconomicthought.wordpress.comnoreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-74672691484859719882015-09-04T19:21:15.873+00:002015-09-04T19:21:15.873+00:00"The franchise system works well."
LOL...."The franchise system works well."<br /><br />LOL. Ask the customers.<br />gastro georgenoreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-12170853039365066982015-09-04T17:41:49.131+00:002015-09-04T17:41:49.131+00:00Simon, as a Corbyn supporter I very much welcome y...Simon, as a Corbyn supporter I very much welcome your thoughtful and constructive contributions to the economic debate. I see the merits of them, and also some counterarguments. In any case, I perceive relatively little disagreement about what needs to be done, but some about the mechanism thereof.<br /><br />I doubt whether there's much which could affect the election result now: perhaps you could write privately to Corbyn assuming he wins, when the dust has settled. He needs a diverse group who are broadly sympathetic to his aims, in order to put flesh on the bones of a workable policy.Sasha Clarksonhttps://www.blogger.com/profile/09817089491670591343noreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-60800339623166405262015-09-04T17:23:14.942+00:002015-09-04T17:23:14.942+00:00Water is the best candidate.
Rail was largely na...Water is the best candidate. <br /><br />Rail was largely nationalised in 2002 by Prescott. The franchise system works well.<br /><br />A lengthy post on the idiocy of rail nationalisation isn't really appropriate here, but it is a good example of Corbyn pandering to the prejudices of those who haven't examined the issue.SpinningHugonoreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-38084493957951532982015-09-04T16:54:23.062+00:002015-09-04T16:54:23.062+00:00Hear, hear!Hear, hear!Metatonenoreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-42766494158077872162015-09-04T16:35:45.870+00:002015-09-04T16:35:45.870+00:00It seems a little bizarre that Hugo can just claim...It seems a little bizarre that Hugo can just claim that Rail is the worst candidate for nationalisation, with no evidence/rationale...Metatonenoreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-48565825617343160822015-09-04T16:23:57.348+00:002015-09-04T16:23:57.348+00:00It is undoubtedly easier than 2009/10, but:
1) as ...It is undoubtedly easier than 2009/10, but:<br />1) as long as there is a deficit the argument that the debt is still going up will be hard to counter, and <br />2) the credit card bill can still easily be presented as much too large<br />So I think the argument is still pretty difficult to make, and particularly difficult for Labour because of existing prejudices. I think the chance of Jeremy Corbyn making it successfully is precisely nil.JDnoreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-57411253784622258722015-09-04T15:19:08.313+00:002015-09-04T15:19:08.313+00:00When/if it becomes clear that the current debate i...When/if it becomes clear that the current debate is about how quickly you pay the debt down, rather than stopping debt rising, I think it will be not nearly as difficult as some imagine. It is a much easier sell that 2009/10, when debt was still rising pretty fast. Mainly Macrohttps://www.blogger.com/profile/09984575852247982901noreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-67754684588847623122015-09-04T14:51:50.691+00:002015-09-04T14:51:50.691+00:00"Prickly & charmless"... You're ..."Prickly & charmless"... You're being far too polite. More appropriate descriptors would be "misguided" or "clueless", such is the frequency with which he misunderstands, misinterprets and unfortunately misrepresents SWL's insights. <br />The self-assured, overconfident judgemental style of his comments is strongly suggestive of a deep-seated intellectual inferiority complex - hence the tone of his narrative towards our host.Simonhttps://www.blogger.com/profile/01453060744510427275noreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-81333656099302335982015-09-04T14:37:40.060+00:002015-09-04T14:37:40.060+00:00Yes, I read that, but I don't see any basis fo...Yes, I read that, but I don't see any basis for the link you draw between people's personal behaviour and what they think about the economy as a whole. I think people will keep worrying about the national credit card bill for as long as it is very high, irrespective of their personal circumstances.<br /><br />This doesn't mean by the way that Labour has to accept entirely the austerity narrative: to an extent I agree with you that this strategy has failed. My point is just that it is very hard, and I think it is going to remain hard. Yvette Cooper sometimes makes a decent fist of it, when she's not doing her impression of an obfuscation robot.JDnoreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-58449736083358123612015-09-04T14:05:52.724+00:002015-09-04T14:05:52.724+00:00I talked about these issues here:
http://mainlyma...I talked about these issues here:<br /><br />http://mainlymacro.blogspot.co.uk/2015/08/is-deficit-fetishism-innate-or.html<br /><br />2010 really was an unusual period: many individuals were saving more/borrowing less, and the Eurozone crisis was a constant news item. Contra what you are suggesting, you might say that as people get more used to borrowing their outlook becomes more nuanced. Mainly Macrohttps://www.blogger.com/profile/09984575852247982901noreply@blogger.comtag:blogger.com,1999:blog-2546602206734889307.post-55373216810297391012015-09-04T13:56:53.978+00:002015-09-04T13:56:53.978+00:00The key question is where Corbyn will get his econ...The key question is where Corbyn will get his economic advice once elected. Will he continue to rely on Richard Murphy and other trade union consultants? If so, the results could be bad. Will he do what Owen Jones suggests and give Paul Krugman a call? If so, would Krugman really have the time or inclination or UK-specific knowledge?<br /><br />Perhaps the best of all worlds would be for him to get in touch with Professor Wren-Lewis...Jonathannoreply@blogger.com