The economic ideology that has failed is a Conservative ideology. It was once called Reagonomics or Thatcherism and it was adopted, not lock stock and barrel but substantially, by Blair/Brown. However at the Tory Party conference in 2007 David Cameron and George Osborne hammered Brown for his economic emphasis saying that it was too Stalinist and that they would introduce much less tight controls and far greater freedoms for private enterprise. In other words they offered a return to even purer Thatcher/Reagan and the Friedman approach to macroeconomics.

Yes Brown’s elimination of boom and bust is a chimera. But the Conservatives have not one ounce of credibility in their position because, let me say again, they wanted more not less of the very thing that has dumped us in the excreta. At least Brown has now realised that electorally useful though laissez-faire was it was the cause of the problems and, unlike the naked Tories bereft of any policy clothing at all, more of it would be an even greater disaster.

I don’t want the Conservatives suddenly to become Keynesians! But in the absence of any credible alternative there positions are fraudulent if they don’t recognise where they were coming from in September 2007, and deficient and unpatriotic if they fail to support the US/UK efforts to help get things back in shape by implementing policies that have worked well in other times of difficulty (1930s and Post War). Keynes lives.   

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