I promised a series of Friday blogs about the nature of the current economic crisis and the policies related to it. Last week I hope I explained how the problems the government has with its policy of containing public expenditure impacts the NHS. Despite the government having a policy of cutting public expenditure, it became clear last Tuesday week that it had actually risen over the year by nearly 8%. I think that figure may have had a direct impact upon the NHS’ first entrant into the ‘failure regime’.
Today I want to explore Keynesianism a bit. Whilst Keynes believed it was important to give the public money to spend in a recession the problem now may be that even that might not help a public that is really frightened about the future.
