Why stimulus costs more jobs than it creates

It isn’t really the point of this blog to just direct you to other blogs but it is well worth reading this from the Spectator Coffeehouse: The true cost of Brown’s debt binge.

In it, Fraser Nelson explains very well how every job ‘protected’ now, due to debt, “will be more than balanced out by money taken away from the economy in the form of the interest needed to serve that debt. All told, Brown’s ‘stimulus’ will destroy more jobs than it creates.”

It isn’t something that any Labour ministers are prepared to admit to, but it does highlight the constant short-termism of current economic policy, and it is a point that the Tories – assuming they really do want to win the election (and I’m not sure I would) – should be making as loudly as they can, whenever they can.