… Clearly a break-up of the euro would hit the UK hard and add greatly to the peril we face. But that has not happened yet and might still be avoided. What is clear is that Britain confronts this risk from a position of great weakness in substantial measure because of the economic strategy being pursued by the coalition government, whose leaders shamelessly blame an event that has not occurred for their mistakes. The true problem is that the framework in which economic policy is cast is 100% wrong.
At the heart of this calamitous strategy is a wholesale misdiagnosis of how the market economy functions and a complete failure to understand why the financial crisis took place, the profundity of its impact and its implications for policy. For a generation, business and finance, cheered on by US neoconservatives and free market fundamentalists, have argued that the less capitalism is governed, regulated and shaped by the state, the better it works. Markets do everything best – managing business and systemic risk, innovating, investing, organising executive reward – without the intervention of the supposed dead hand of the state and without any acknowledgement of wider social obligations. …
The Guardian er ikke nådig. #UK #okonomi