Econ 101: DeLong on Britain

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Brad DeLong takes issue with the new policies of British Conservatives.

Their shame would not be quite so great if they had a theory about what elements of spending will grow to offset their 9% of GDP planned fiscal contraction. Is the pound supposed to collapse and are exports than to surge? Is the prospect of rising unemployment in the U.K. supposed to greatly enhance business confidence and trigger a surge of private-sector investment? Is the 30-year gilt yield supposed to fall from 4% to 1% and that reduction in the cost of capital cause a surge of capital formation throughout Britain?

Cameron, Clegg, and Osborne don’t tell us.

They don’t tell us because they are clueless dorks.

That’s right, kids: lack of economic understanding is not limited to America!

/bangs head against desk