By Harold D. Clarke;Peter Kellner;Marianne Stewart
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Additional resources for Austerity and Political Choice in Britain
Money is no different from any other commodity since a fall in demand for it will reduce its price. The traditional theory was that when interest rates fell consumers would start spending their money because the returns on savings – the alternative to spending – are very small, and entrepreneurs are more likely to invest in these circumstances since they can obtain credit at very cheap rates. The problem with this analysis is that it does not take into account people’s expectations. Even if interest rates are zero, people will not start spending if they think that the economy is going to stay in recession and their livelihoods will continue to be at risk.
Setting the Scene for 2015 emails) and the concerns of their constituents in the debate. Other MPs opposed action on the merits of the case rather than because of public attitudes. But it is possible that, by showing that a representative sample of voters told the same story as MPs’ inboxes (which sometimes reflect the organizing power of rival camps rather than genuine local opinion), the poll reinforced the doubts of some wavering MPs. As a result, a British government lost the first vote in Parliament on a matter of war and peace since the Crimean war in 1855.
This means that with valence issues the debate is not about supporting or opposing a particular policy but rather about which party is best at delivering that policy. If an incumbent party does well in managing the economy and in delivering key public services such as health and education while protecting citizens from crime, terrorism and other forms of insecurity, then it can expect to be re-elected. If it fails to do these things and there is an opposition party ready to provide a credible alternative, then it will lose office to that party.
Austerity and Political Choice in Britain by Harold D. Clarke;Peter Kellner;Marianne Stewart