Mark Carney's 'wrong' about economic growth

49
3
Mark Carney's 'wrong' about economic growth

The former governor of the Bank of England, Mark Carney, sparked fury among Brexiteers, as he accused them of having a 'basic misunderstanding of what drives economies'. Carney accused the government of failing to understand economic growth by promoting tax cuts and reduced government spending. He said that such approaches were more aligned with 'demolition' than 'construction' and accused far-right populists, including Brexiteers, of capitalising on public anxiety to further their agendas. Some others, and there are others, have a different model, he said. The demolition business is doing the demolition job. Far-right populists view the anxiety of today as an opportunity to stoke the anger that's necessary for their project.

Those with little experience in the private sector - lifelong politicians masquerading as free marketeers - grossly undervalue the importance of mission, institutions, and discipline to a strong economy, he said. A spirited retort to his remarks, Camilla Tominey, assistant editor of The Telegraph, took aim at what she perceives as flaws in Carney's own economic philosophy. She was quick to offer a counterpoint to Carney's claims. She questioned the efficacy of Carney's 'values-led' economic approach and highlighted the current state of taxation and public services in the UK. While Carney did not approve of tax cuts and reduced government spending, Tominey argued that the nation struggled with high taxes and inadequate public services while economic growth remained stagnant.

She pointed out that Britain might not have realised the vision that some Brexiteers had in mind, but it certainly hadn't devolved into the economic turmoil Mr Carney suggested with his comparison to Argentina. In her opinion, Britain had adopted a more European approach to tax and spending, which in her opinion was failing the nation. The similarity between Carney and European leaders in economic philosophies was also reflected in Tominey's remarks. She also raised the timing of Sir Keir Starmer's announcement that Britain would not diverge from EU rules if Labour was to win power in the next election. She added that this declaration was made during an event hosted by Canada 2020, a centre-left think tank chaired by Mr Carney. She argued that this connection hints at abroader intersection of political and economic ideologies. She wrote: 'Those who believe cutting taxes and government spending leads to growth'. Where exactly has his 'values-led' economic approach got us? Certainly, today we are taxed more than ever for an overly bloated state delivering increasingly inadequate public services. And growth is still virtually stagnant, even though there's still room for improvement. t Argentina, either. The fact of this matter is that we have quietly become a very European country in terms of tax and spending - and like the rest of Europe, it's failing us. ''Suggest that Britain would not diverge from EU rules if Labour wins power at the next election is not that he's once again betrayed his pro-Remain sympathies. The Labour leader made the intervention in Montreal on Saturday, when he was speaking at an event hosted by Canada 2020, a centre-left think tank whose advisory board is chaired by none other than Mark Carney.