The opening claim was that fiscal control is the first duty of a Chancellor. The obvious question to ask is, why? That is not a rhetorical question. Instead, it is because I think that a Chancellor’s first responsibility is to create a prosperous, resilient and fair economy.
After all, why should controlling the government’s finances be considered more important than maintaining full employment? Or ensuring the delivery of decent public services? Or tackling climate change? Or investing in the country’s future?
Managing the public finances is one of the tools available to achieve those objectives, but it cannot be the objective itself. Confusing an instrument of delivery with the purpose of activity has become one of the defining characteristics of Treasury thinking. And that confusion has consequences, because once fiscal control becomes the goal rather than the means, every other ambition the government might have is subordinated to it. To open your description of the job you plan to do with a category error is quite something, but Healey managed it.
So the Minister specifically there to do the fiscal bit – other ministers deliver public services etc – is not to do the fiscal bit job?
Seems odd.
Note that under MMT the Chancellor is still there to do the fiscal bit. Sure, spend away, then tax back to prevent the inflation. OK, someone still has to do that fiscal bit, right? The Chancellor…..
The post It’s a glorious idea, no? first appeared on Tim Worstall.
