‘A house divided’
Sir, —Most would agree with Adrian Brokking’s “state of the nation” article (“The Press,” August 1). The Values Party hardly deserves full marks for its pre-Budget “budget.” A budget sets out expenditures and sources of revenue. The Values "budget” was more a policy statement. Mr Brokking’s economic musings sound orthodox and dutiful — a product of
Keynes and Samuelson, no doubt. Now that turnovers in terms of volume are static, theories on the use of interest rates to modify borrowing habits should be examined again, especially in the productive sector. The Government wants a reduction in spending and inflation. It approves higher interest rates as an inducement to savings, which are redirected, at ever higher rates, into capital investment. Costs and prices rise, forcing consumers to spend more, even to stand still. A rule cannot be lengthened by cutting a piece off one end and fixing it to the other end.—Yours, etc.,
P. NORMAN DAVEY. August 2, 1977.
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Press, 4 August 1977, Page 16
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160‘A house divided’ Press, 4 August 1977, Page 16
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