Duncan’s Economic Blog

Brown’s Speech

Posted in Uncategorized by duncanseconomicblog on September 30, 2009

I don’t have time today to  do a full analysis of Brown’s speech. But in general I liked it.

In the economic sections he concentrated more on future growth and less on the fiscal situation, that’s sensible. On a simple word count “investment” was mentioned five times against “deficit” only getting four.

I’m intrigued by the idea of a National Investment Corporation and will await full details.

But best of all was the line, “Finance must be the servant of people and industry and not their master.” Which I believe is drawn from the Party’s 1944 “Full Employment and Financial Policy”. If only he’d quoted the whole section…

Blame for unemployment lies more with finance than with industry. Mass unemployment is never the fault of the worker; often it is not the fault of the employers. All widespread trade depressions in modern times have financial causes; successive inflation and deflation, obstinate adherence to the gold standard, reckless speculation, and over investment in particular industries…

The view is now widely accepted outside the ranks of the Labour Party, by most economists, by many Government officials, by many businessmen, even by some bankers…

Finance must be the servant, and the intelligent servant, of the community and productive industry; not their stupid master.

2 Responses

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  1. lesley Johnson said, on October 1, 2009 at 9:36 pm

    Very impressed

  2. Will M said, on October 5, 2009 at 9:29 am

    tbh, i’m not convinced on the idea of finance being the servant of businesses. i think you get a far more tightly-run business when it knows there’s no alternative to paying the bondholders and shareholders. but then, i do think making money for investors is the point of business, and i know not everyone agrees.


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