Thursday, 22 May 2008

Destabilising the Economy?

Karl Marx understood that economics always leads politics. He suggested that government can do little to control the business cycle and that trying to delay it would ultimately make slow downs more dramatic and painful.

Would Interactive Democracy have a negative impact on the political/business cycle? Would it undermine "prudent" financial governance and the control of inflation? Would voters demand action to alleviate short term financial pain only to be worse off in the long run?

To my mind this all comes back to good leaders with good arguments persuading voters of their case. Some may say that it is virtually impossible to explain the complexities of economics to the average voter, but credible leaders don't have to, they just need to identify the consequences of any particular decision.

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