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I was in the airport in Auckland the other day and saw this headline. Well, it didn’t actually say that. The magazine was upside down, and that’s what it looked like. It actually read ‘Obama Changes Words Into Deeds’.

I think my version is truer. The proposed stimulus programme will not, cannot, do anything to improve the economy. Simply increasing spending cannot help. What will help is increasing productivity. To do that you need measures which increase business confidence, and make it easier to employ people. This will increase business investment and raise employment levels, and this increases spending in an appropriate, affordable and sustainable way.  Simply increasing spending will only increase debt, and prolong and deepen the recession. Richer countries may be able to cope. But this is a disaster for developing nations, and will not win friends for the US in the long run.

As for changing words into deeds, well, what exactly?

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