The Growth Comission Report

[hammard]

Whilst a bit weighty at around 30 pages Growth Comission Investment Report is certainly an interesting read I thought I'd share here.

[Pie Man 70]

Had a scan through, although much wen't over my head (Being an engineer not an economist and it being 4am) it generally had some pretty decent ideas and was not all that complimentary on current govt policy in a lot of areas.

Main issue was looking at shale gas as a green energy policy, it is cleaner than coal, but that isn't saying much, also the US is having major problems

http://www.declineoftheempire.com/20...es-public.html

basically there is an initial high output in the first 2 years after which output falls by between 60-90% problem is that initial glut reduces prices meaning teh firms will often not be able to afford to get at the more difficult remaining reserves.

It is also linked with many environmental problems including gas escapes, contamination of the water table and minor tremors.

In general though I agree with the basic idea that many policy areas are hamstrung by political micro-management and setting up independent bodies to assess policy on evidence is a better way forward.

Obviously I am also very keen on targeted investment, particularly in infrastructure to fuel growth and the folly of austerity in a recession. I'd like to think that the exposing of the massive methological flaws and spreadsheet errors in the Reinheart-Rogoff paper that so many govts have based their fiscal policy on would warrent a change in direction, but as many commentators have pointed out R-R was mainly touted because it supported what those in charge wished to do anyway, with it discredited they will merely find another paper to support their policy.