Phillip Hammond, the Chancellor of the Exchequer over in Britain, is indulging in the usual pre-Budget talkathon about how lovely everything he's going to announce will be. A higher productivity economy will pay higher wages, no doubt about it. And then when the good times come back then pay off some of that accumulated national debt by running a budget surplus. The thing is here that we can indeed run these points through standard Keynesian theory and they're all just fine. And it's a very good idea to make sure there's some resilience, some room for maneuver, at the same time as well.

Source: Forbes March 05, 2017 15:59 UTC