The thing about Keynesian economics Joll is that you have to save when you can and spend constructively when you have to. Brown has done neither.
New Labour does not represent its traditional supporters. They represent those on hand outs, tax credits and the public sector. The "working man" is as fucked as anyone else.
Agreed. Brown spent and borrowed through the good times to buy electoral popularity for Labour. It worked. They're still in power. And every day they risk the future of the British economy to cling to power. And it is quite possible that they will get a hung parliament and continue to inflict their odious policies on the people of Britain. Under Labour we've seen a loss of free university education, great increases in social inequality, development of a benefits dependency culture of despair, an illegal war fought to increase Labour's popularity and a disregard of the fundamentals of economics to buy votes. Plus their betrayal of the British people over the Lisbon treaty. Plus a stench of corruption around illegal donations and cash for peerage, and now it is 3 Labour MPs being tried for theft (a peer, the Conservative, isn't quite the same thing as an MP). And who killed David Kelly? The sadness is they might even manage a hung parliament.
The UK economy is in a mess, but it isn't like Greece. We do have a massive overspend, but most of that has gone to buy bank shares which are an asset which one day can be sold. Even Labour has a luke-warm plan to bring the defecit down, and Conservatives can convince the markets they can do more. We can devalue and doubtless will. We have a legacy of good behaviour which is keeping the credit rankings right. I'm very far from complacent - we're ever so vulnerable - but at least I can see a way through this mess, basically if we can avoid an upset in the next few months. With Greece (and Portugal and to some extent Spain and Italy) I really can't see a way through unless they leave the Euro.
Yes Greece should solve its grey economy. But it won't, at least not in the next few weeks. Yes Greece should start an Ireland style austerity policy, but it won't make it stick. An inspirational leader of Greece would lead Greece out of the Euro and the EU, default on debt, devalue, give people the salary rises they want, work with the Greek system of corruption and popular dissent, go on an export drive - and do it all wrapped in the Greek flag and singing patriotic songs. It would work and Greeks would be happy.