Martin Wolf, back to economics by elitism

Such levels of spending are a reflection of political and social values, not economic necessity

From his latest op ed, talking about the UK and the heavy government sector. Yet again an economist has decided to automatically partition govefrnment, as if voters must obey his theory.

So what explains the UK’s striking austerity? The starting point must be the size of the deficit itself. In 2010, the UK’s share of headline borrowing in national income was the third highest among the high-income countries, after the US and Ireland.

Sure, this also explains why Martin Wolf's theories may be wrong. he is back to the Keynesian multiplier thingy. The economy may grow GDP at the same rate, if you grow it by government you grow it with great volatility, when it grows by decentralized development, it grows smoothly with less heteroscedacity.

This is the point of the Hildago work, accuracy and variability is GDP growth, Keynes is growth marred by inablity to measure. Keynesians never see the badly dispersed results of their theory, but the agents do.