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Douglas Carswell's Blog

06 DEC 2012

We need a post-Monetarist approach to economics

A significant piece by Jeremy Warner in today's Telegraph shows that the mood amongst the commentariat is starting to shift.

"Two and a half years into the new Government" he writes "we seem to be no nearer getting on top of Britain's debts, or even its deficit, than we were at the start."

Indeed.  If it wasn't for the G4 auction windfall and the QE funny money accounting, some reckon that the deficit this year would be higher than it was last.

Jeremy concludes that "What we seem to have is a kind of "New Labour-lite" approach to government in which the Treasury constantly shrinks away from what really needs to be done."

I prefer the term Continuity Brown to "New Labour-lite", personally.

What Conservatism - and the country - urgently needs is a new economic critique, based on a post-Monetarist analysis of the economy.  We ought to be looking for way of dealing with the chronic malinvestment that is holding back the economy, rather than keep adding to it with more cheap credit. 

Real Tory modernisers would be asking how we might tackle the underlying decline in competitiveness, rather than dismissing demands for tax cuts and deregulation as a "right wing" obsession.

Instead we have an approach to the economy that has barely changed from when Gordon Brown was in charge. 

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