This is the economics of the mad house.
First the Chancellor says that under, what effectively is a mini budget, the people will now receive benefit to make up for the tax loss. No one has said yet what the administrative cost to the country of taking the money and giving it back to people is. Does strike me as rather ludicrous.
But to compound it, the Chancellor says he will borrow money to pay for what is in effect the weekly shopping bill. Given he is committing to do this year on year, that is a lot of borrowing to pay for the weekly bills. I always though you only borrowed when you were investing in something tangible.
Clearly under Labours new economics, not so.
