Biden is doing the business..

The FT has reported that the Biden administration is going to go for a $2tn infrastructure programme in order to reshape and stimulate the US economy.

This, it is suggested is:

…the biggest public investment programme since the creation of the interstate highway system and the Space Race of the 1960s.

And including some green improvements:

…funding for traditional infrastructure upgrades, including roads, bridges, public transport networks, electric vehicles and vital hubs such as ports and airports.

Now this is after the $1.9tn stimulus plan now passed, mostly to give a boost to employment. This is about double the UK’s current stimulus per head (depending largely on how long furlough actually lasts).

So the US is now proposing a second, really transformational boost to the economy.

Meanwhile the UK Chancellor, Sunak, obsesses about paying back what he’s borrowed from his own government self, rather than trying to make this post Brexit, Covid flattened, offshore island’s economy zing.

Our elected Brexiter government has truly stitched up its people.


  1. Schofield -

    It seems to me the UK is a deeply poisoned country in terms of understanding how things work especially in the areas of economics and the country’s currency systems. Decades of right-wing shallow thinking propaganda in these particularly have led to this. I’ve just finished reading a paper by Richard Werner, professor of Banking and Finance at Oxford University, in which he conclusively establishes through two empirical tests that private sector commercial banks create currency from nowhere when they make loans. Amazingly what he says in his paper is that he researched back to the middle of the 19th century to see if anybody else had conducted empirical tests to establish how these banks obtained the currency for there loans. He found none but right-wing propaganda throughout this period persistently claimed that it was impossible for these banks to create currency from nowhere. Werner points out in his paper the great harm this denial has caused throughout the world over this century and a half period.

    After reading this paper it seems perfectly rational to ask where are the politicians in the UK campaigning on the basis that the UK has been poisoned in regard to its thinking about the above two issues if not others!

    1. Peter May -

      Richard Werner is quite right!
      And an intriguing character – having been sacked from So’ton – not Oxford by the way – University on the basis that he was German and a Christian – allegedly.
      Not sure what the outcome was or is…

      1. Andrew Dickie -

        German and Christian!!!??

        What relevance do those have to his academic capability. They might as well have sacked him for having red hair and being a vegetarian!

        Surely this cannot be true?

  2. Schofield -

    I’m not sure why Richard Werner’s encounter with idiots is of relevance. The more important issue is that after the publication of Say’s Law in 1803, which was then reinforced by the nonsense of Loanable Funds Theory, nobody bothered to check for 211 years whether the latter was true and therefore by extension, incorporating the observation of long periods of mass unemployment, Say’s Law was true.

    The UK appears to be one of those countries where the ruling class knows if you repeat lies long enough they become part of conventional wisdom!

    1. Peter May -

      It’s not – it’s just that he is, as I said, ‘an intriguing character’. Indeed intriguing characters are probably most likely to reach conclusions removed from the mainstream – even if he did invent QE, although of course what we now call QE was not actually what he intended…

  3. Schofield -

    What’s actually of interest in the paper that Richard Werner wrote which I referenced above is what’s missing. He writes about his second empirical test on how private commercial banks create currency is based on the software banks use yet he doesn’t go on to ask the question how could such software have been written by a programmer without bank management describing the balance sheet operations that have to be emulated! Chief amongst those operations would be no request to lend out existing bank deposits to create bank loans and therefore no mirroring of this in the sofware!

    1. Peter May -

      Good point.

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