David McWilliams at it again...

sbpost.ie/post/pages/p/whole … qqqx=1.asp

“if we want to keep unemployment low, we have to make labour cheap and boost demand”

The secondary objective of economic policy now should be to create inflation

I can’t quite square this circle…

David has a bad case of Krugmanitis davidmcwilliams.ie/2008/10/15/paul-krugman

New president needs to run up a frightening debt
By David McWilliams, Wednesday January 21 2009
independent.ie/opinion/colum … 08220.html

I hate this unqualified statement. We need to keep people in employment in:
a) productive existing industries and
b) new productive industries.

The last thing we need is to keep people in unproductive and unprofitable jobs just to keep them in employment. If the government uses more money to prop up an ailing industry than it will provide back to the exchequer, surely there are better uses for that money? If nothing else, they could invest that money in some of these new high tech industries that we keep hearing so much about.

More and more, DMW seems to be losing his touch.

Mrs. O did comment yesterday that David seems more frustrated in his articles these days, and they don’t have quite the same thought provoking element that they used to have. With so many bandwagon jumpers around these days, maybe he’s trying to differentiate himself from the latecomers. He’s built a successsful media/writing career by opposing the perceived wisdom of the day, but to maintain his profile he needs to stay one step ahead of the pack.

+1

When Cowan gave his “jobs, jobs, jobs” Obama-lite speech not so long ago I had the sinking feeling that no lessons were learned from the last civil service hireathon during the eighties recession. Full employment is not a goal in itself worthy of pursuit at the expense of all else. Better to have a viable economy with 20% unemployment than to bankrupt the country trying to ensure everyone has a job.

Sort out the country’s finances first and foremost. The rest will follow.