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Would MP Thomas Attwood have agreed with this proposal by MP Caroline Lucas?

February 12, 2016

thomas attwoodA net-surfing reader found a reference to Thomas Attwood as a leading member of the Birmingham School of economists which put forward an underconsumptionist theory from 1815, rejecting classical economics.

Underconsumptionist? She read further.

This theory stated that recessions and stagnation arise due to inadequate consumer demand relative to the amount produced. Because workers are paid a wage less than the value of their product, they cannot buy back as much as they produce and there will always be inadequate demand. This formed the basis for the development of Keynesian economics after the 1930s.

The use of an expansionary policy was advocated – increasing the total supply of money in the economy more rapidly than usual, in the hope that easy credit would encourage businesses to expand and increase employment opportunities.

Caroline Lucas says:

Caroline Lucas 3“A job creation strategy like the Green New Deal, for example, would ultimately pay for itself by generating incomes and boosting emerging green industries.

“What we need is properly regulated quantitative easing directed towards creating jobs, increasing lending to small businesses and facilitating the move towards a green economy”. (First link used is now obsolete, but another found with slightly different wording).

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