Monday, January 18, 2010

Moron of the Day: The Guardian leader writer

There is a quite extraordinary leader in The Grauniad today—how can one take seriously a major newspaper that publishes this kind of twaddle?
Politicians want us to believe that it is possible to make better-off people richer without making poor people poorer.

Look, you fucking moron, economics is not a zero sum game: there isn't a finite amount of wealth in this country, that just gets shared around. The wealth increases: and we measure it using something called GDP—the value added to the economy (usually over a year). In Britain's case, this value added comes to roughly £1.5 trillion every year.

Or, let's use Timmy's illustration...
Just as one example. Way back when, around the time of the start of the Industrial Revolution, the gini (a measure of the inequality of the society) was about 0.50 for the UK.

The unchanged gini (ie, before we consider the effects of the tax and benefits system) for the UK now is about 0.50.

Are the rich better off now than they were in 1750? I think the answer to that is obviously yes. Are the poor better off now than they were in 1750? I think the answer to that is similarly and equally obviously yes.

So, we’ve got unchanged inequality of market incomes over the 259 years, the better-off are better-off (umm, obviously, making adjustments for the fact that no one at all is 259 years old) and the poor are not poorer.

It is therefore possible to make the better-off better-off without making the poor people poorer.

The mechanism is called economic growth.

So, that's a colossal economics Fail in the Grauniad leader.

Fucking hellski.

11 comments:

Gimp Masked Troll said...

"Politicians want us to believe that it is possible to make better-off people richer without making poor people poorer."

It's the kind of quote you'd expect from a national socialist. They do say move too far left or right and you'll meet your adversary round the other side.

It's why this paper sells so cheaply on uni campuses.

Stuart said...

Or, in my simple ways, let's say I make two clay pots in my spare time. I give one to the rich man and one to the poor man. Hey're both better off.

(and GDP has risen by two pots).

Chris said...

Politicians want us to believe that it is possible to make better-off people richer without making poor people poorer.

Erm, it is. Adam Smith sussed it out before Marx was a twinkle. Rich guy pays poor man to do a job he doesn't want to, freeing up more time for rich guy to pursue his (more lucrative) trade. Both end up richer than if the rich man did his own scutwork. Win-win.

GCSE Economics textbook to the Grauniad offices please.

ENGLISHMAN said...

What is a "gini"?

Captain Ranty said...

I take my gini with tonici...

"(and GDP has risen by two pots)."

But because you just added two pots, you decreased the value of all the existing pots.

CR.

assegai mike said...

That dependes, surely, whether his pots were excellent or shit.

OldSlaughter said...

I have got some excellent pot.

Anonymous said...

I actually think the Sun is a better Newspaper than the Guardian.
On second thoughts I also think the Sport is a better Newspaper than the Guardian.
The Guardian ?
What a strange name for an Illeberal bossy jumble of nonsensical crap.
I suppose if you had a degree in Wimmins studies it would appeall.

The Caught Guester said...

This leader is obviously very disturbing. It is astonishing that in this day and age a national newspaper could write what we in the western world pride ourselves in calling "Complete and utter fucking bollocks".
I would very much like to take this opportunity to issue a very stern warning: If you buy 'The Guardian' you are aiding the destruction of mankind and everything that is good in the world.
That warning isn't in strong enough terms but we have to start somewhere.

Nurse Anne said...

Unbelievable. The other papers aren't really any better though.

Stuart said...

"But because you just added two pots, you decreased the value of all the existing pots"

Not necessarily. this is Supply vs Demand 101.