[Re: More public spending is unlikely to multiply into stronger economic growth, yesterday]
Paul Ormerod is spot on. I had hoped that the world had evolved beyond the theories of John Maynard Keynes. It should be obvious now that an increase in public spending will not stimulate the economy. Rather, David Davis is right. The economy must be jolted into action, and that won’t happen if you increasingly saddle the country with debt. You do this by relaxing labour laws, removing red tape, and lowering taxes. This is why our politicians need to have practical experience in the business world. Common sense is something we seem to be lacking.
Gas is no saviour
[Re: Britain can finally make the dash for gas with Paterson, yesterday]
Benny Peiser’s suggestion that shale gas is a silver bullet for the economy misrepresents reality. A Deutsche Bank report on shale’s potential in Europe suggested that “those waiting for a shale gas ‘revolution’ outside the US will likely be disappointed”. In the UK, estimates by the British Geological Survey suggest that recoverable shale reserves are equivalent to around just one and a half years of UK consumption. And UK emissions will not be positively impacted. Any additional use of gas will be at the expense of genuinely lower carbon alternatives.
Jenny Banks, energy and policy officer at the World Wildlife Fund
I can’t believe the Tories have been so easily satisfied by this small reshuffle. It’s the economy they should worry about.
Reshuffle optimists aren’t predicting radical improvements, but there’s greater scope for lots of incremental improvements.
Delaying the Heathrow decision until after the next election is unacceptable and should be taken as a green light.
Boris Island and regional expansion is the way forward to increase capacity. Do we need an expensive review to tell us this?