New economic theory ?

Just been listening to Bob Crow (financial genius / leader of the rail union) on BBC2 Daily Politics prog.

He reckons that the cause of all our current financial problems is that wages (especially his members') have been held down for too many years. He also suggests that cutting taxes, taxing the rich and spending like it's going out of fashion, is the way out of our present problems.

With people like this, who needs sub prime?

Bob Crow has been a leading British communist for years. I suppose he is commendably true to his beliefs, as for him, the best outcome from this crisis for the Capitalist system would surely be the destruction of that system. But I really think the programme could be more discerning before inviting holders of fringe and extremist belief to come on terrestrial TV.

Some financial genius

I wonder if anyone could direct me to common sense, no communist, no pro-Bush, decent economist of our times.
I am quite tired already to listen neo-Keynesians like Joseph Stiglitz (Nobel Prize winner in 2001) as he was the with the bunch of people (read Clinton administration) according to Turner who let go the US jobs abroad (at least while he was chief economist in Clinton administration). Furthermore, he does not provide clear explanation on : How will the coercive institutions of the state be constrained? What is the relation between the state and civil society? which has been raised before by James McGill Buchanan Jr..
I am also quite tired of blaming liberalism for the "Bush affairs" as to me Republican party in USA has not much to do with pure liberalism.

I come to T2W as I have noticed that several individuals here are entrepreneurs so anyone could point me into the direction which is not politically biased. Pure common sense economics like "game theory" or something, as I can`t really take all this debate anymore.


anyone , please?

By the nature of what they are debating economists tend to end up on one political side or another - their theories are used and abused by poli's.

Steve Steve Keen’s Oz Debtwatch: Analysing Australia’s 45 Year Obsession with Debt is liked by neither left or right in Australia because they would both like to have his views be untrue. Sadly for many he will probably continue to be proved correct. You will find that he explains where he stands wrt Keynes and his issues with Bush would simply be in areas where his government's policies contributed to the current situation. So that's probably worth looking at.

0007 said:

Just been listening to Bob Crow (financial genius / leader of the rail union) on BBC2 Daily Politics prog.

He reckons that the cause of all our current financial problems is that wages (especially his members') have been held down for too many years. He also suggests that cutting taxes, taxing the rich and spending like it's going out of fashion, is the way out of our present problems.

With people like this, who needs sub prime?

Click to expand...

0007 I'm afraid you are 180 degrees wrong and you are in danger of throwing the baby out with the bath water...

Let's analyse...

Unequal distribution of income is one of the biggest problems facing the world. There is the haves and have nots. The whole system is rigged in favour of the haves without a doubt.

The rich spend their money on luxery import items. **** they don't really need. Most of this luxery expenditure stuff is leakage - goes to another country.

The poor spend their money on absolute essentials like food clothing and accommodation. Most of this stuff is local or domestically sourced so remains within the UK.

The rich have to be taxed. If people earning equal amounts of money get taxed equally then people earning unequal amounts of money should be taxed unequally. IMHO that should be a progressive taxation system not regressive. That is tax the person earning more - at a higher rate. Flat taxes also ok I guess. But VAT hits low incomes harder than high incomes.

The rich don't need to spend their money as they have most of everything anyway. Giving them money is like spending it abroad in international job creation.

Look at the fat cats and management. They always get more than the personnel who deliver with all the hard work the daft visions these public school boy twits deem fit.

Look at the Banks and all the big wigs. Not one dismissal.

Why is it that shareholders have not trumped up the additional funds required by the banks but government has on the back of the tax payer?

Rich geezers don't pay tax as they have tax havens to syphon away what they should be paying.

Thus we should tax the rich shareholders who the tax payer has effectively bailed out.

We need to increase the domestic velocity / circulation of money to make everybody feel rich again owning more produce.

Capitalism has failed miserably.

Even the banks recognise they are virtually 70% nationalised state owned. If this happened in USSR everybody would be going tut tut those reds really screwed up. On the contrary I think in this case Bob Crow is 180% correct in his diagnosis and prescription.