Despite all the talk, the macro economic settings at the Treasury have hardly changed since Gordon Brown was at the helm.
As I argue in the Telegraph online today, there is the same reliance on cheap credit to engineer growth. The same print-money-and-pray assumptions behind QE.
Treasury group think continues to recoil from any suggestion of "unfunded tax cuts", while adding billions more to the national debt each month with unfunded spending commitments.
There is the same "too clever by half" tinkering with tax reform. And some decidedly Brownian dithering over airports and deregulation.
What we need, I suggest, are some dramatic tax cuts. Taking up Allister Heath's idea, I advocate slashing Corporation Tax to 11 percent and abolishing Capital Gains Tax entirely.
How to pay for it? Less government, of course. I identify five Whitehall departments that we could live without.
The Continuity Brown approach has failed. Soon it will be seen to have failed. As in the late 1970s, there is an entirely new, free market economic script needing to be written. Perhaps this time it will be less monetarist, and more post-monetarist.blog comments powered by Disqus
New! Download Douglas' new paper on economic policy and monetary reform
"A revolutionary text ... right up there with the Communist manifesto" - Dominic Lawson, Sunday Times