Can things only get worse?

Alistair Darling’s Clueless in Lewis interview (Guardian Weekend August 30, 2008) is more alarming for the fact that the Conservative opposition has even less idea and that this lack of basic economic understanding has been around for decades.

You cannot lower interest rates to stimulate demand without cheap credit being diverted into house-price rises and then bubbles. The answer is to block the credit going into housing with a tax. As the inflationary element in the price of a house is the land underneath, that is what you tax. It really is as simple as that.

DBC Reed
Northampton

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