The Brilliance of Conservative Economics

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Ben Cohen
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(Bank of England)

Bank of England

Britain woke up to the following news today:

Sir Mervyn King expressed fears that Britain is in the grip of the world's worst ever financial crisis after the Bank of England announced it was injecting £75bn into the ailing economy.

The Bank's governor said the UK was suffering from a 1930s-style shortage of money and needed a second dose of quantitative easing to boost demand and prevent inflation falling too low.

'Quantitative easing' is a complicated way of saying 'bail out money' - only it's used to buy crappy assets purchased by banks, not help regular people. The money will be printed and injected into the economy in the hopes that the stock market won't disintegrate. Corporations and the rich need to be assured that the government has their backs, so as expected, the Tory government is all over this.

The hypocrisy, as always, is stunning. Government handouts for the rich are labelled 'quantitative easing' while welfare and jobs programs are called 'bailouts'.

Regardless, it's proof that the only way to recover from a recession is to spend your way out of it. Not exactly standard conservative economics.

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