And here I thought that Paul Krugman winning a Nobel Prize was the silliest economics-related news this week:
Alistair Darling, the Chancellor, has declared that the government will boost its spending in an attempt to help the economy weather the recession about to grip Britain…. He spoke approvingly of plans to prop up the economy by embarking on big government-spending projects, an interventionist policy in the style of John Maynard Keynes, the 20th century economist.
Increasing government spending to escape a recession? Now, there’s a new concept! Considering that Darling’s brilliant plan has literally been textbook macroeconomics for the past five decades, what are the chances that this is somehow going to fail? Infinity to one against or Infinity squared to one?