Tuesday, January 25, 2011

Caroline Lucas on Economics

Greens don't want growth using up the world's resources.  They are against over-consumption, and in fact want consumption to reduce. But, on the other hand, they are in favour of full employment and redistribution, and call for a rebalancing of the economy to green industries.

The UK economy contracted by 0.5% in the last quarter of 2010, but if the bad weather is taken into account, the true figure is probably nil, neither growth nor contraction. Output in production industries however expanded by 0.9%, whereas service industries output contracted by 0.5%. The claimant count also fell slightly in December.

Now, you would have thought that these figures would be welcome to a Green politician; reduction in unemployment without economic growth, rebalancing of the economy, and reduction in consumption. Even reduction of the deficit which fuelled overconsumption should be welcome to a Green. But no, this is what Caroline Lucas has to say:

The ONS figures heap further doubt on the Conservative-led government's policy to eliminate the national deficit at breakneck speed – and at huge social cost

Now how is that?  Wouldn't green economic policies produce similar figures? A few paragraphs later, Lucas calls relying on GDP to measure success a "pure fallacy", but it seems to me that there isn't much point in adhering to an economic theory, unless you are also prepared to apply it.  Ever since the economic crisis broke, the Greens have come over all Keynesian, even though the Keynesian approach relies so much on stimulating consumption, which Greens should be against.  The result is incoherent nonsense.

1 comment:

Anonymous said...

LOL, rather daring for a lib dem to call out anybody really for talking nonsense. How was Cleggy trying to sell the tuition fee betrayal - "Everybody pays less" [big pause then whisper] "per month".