Duncan’s Economic Blog

The economic debate in Britain & America

Posted in Uncategorized by duncanseconomicblog on July 13, 2009

How come whilst the economic debate in Britain is about cuts, withdrawing stimulus and exit strategies, the debate in the US is focussed on the whether or not a second stimulus is needed?

8 Responses

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  1. Will M said, on July 13, 2009 at 11:56 am

    hmmm. not sure there is that much of a debate in the States – certainly as far as non-internet commentary goes, there is little support for a second stimulus. that anyone is suggesting it in the States compared with the UK reflects the relative unemployment rates.

    • duncanseconomicblog said, on July 13, 2009 at 12:57 pm

      Krugman is worth a read on this:

      http://krugman.blogs.nytimes.com/2009/07/08/unpersons/

      • Will M said, on July 13, 2009 at 5:45 pm

        touché

        krugman’s point does seem to boil down to “i’m very smart, why aren’t more people taking notice of me”.

        but it does link to my point: there isn’t even that much of a debate going on in the States. and they have a far broader and better-read commentariat in general anyway. as such, a few left-leaning blogs on the UK spending more are the equivalent of the US debate.

        does this make you Krugman?

  2. Tim Worstall said, on July 13, 2009 at 12:41 pm

    Erm, because we’re near broke and cannot afford a second stimulus while they are not?

    Because we’ve not fallen for the Keynesian flim flammery in quite the same manner?

    Because we’re sensible?

    There’s any number of answers to your question really……

    • duncanseconomicblog said, on July 13, 2009 at 12:54 pm

      Britain was best placed to weather the storm?
      🙂

  3. VinoS said, on July 13, 2009 at 4:39 pm

    Perhaps the US is taking Keynesianism more seriously than we are in the UK – as was the case in the 1930s.

    Also, what is the US deficit as a % of GDP. Perhaps it is lower than ours and so they feel they have more room for manoeuvre.

  4. Tim Worstall said, on July 14, 2009 at 9:06 am

    “Perhaps the US is taking Keynesianism more seriously than we are in the UK – as was the case in the 1930s.”

    Umm, the UK didn’t need to take it more seriously in the 30s. We came off the gold standard and had a nice monetary stimulus (if that’s the right phrase for an exhange rate one) without needing to reach for fiscal stimulus. UK started recovery in 32/33 remember?


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