Follow Keynes

Regarding your report “BP’s billion dollar boost lifts the gloom over North Sea jobs” (6 August), as Deirdre Michie of Oil & Gas UK says: “It’s encouraging to see continuing BP investment.”

However, already more than 5,000 North Sea jobs have been lost, with all the consequences for the people affected.

Alas, more job losses are likely despite the industry’s efforts to cut costs and improve efficiency.

Sign up to our Opinion newsletter

Interestingly, the real oil economy shows the difference between a “supply side” approach and Keynesian pragmatism.

The former favours tax cuts, wage reductions and technical innovation, which mainly are all concerned with labour supply.

Is this approach effective when there is an over-supply of oil and also low aggregate demand? Global aggregate demand for oil cannot be boosted unless all governments pursue full employment and growth.

ellis thorpe

Old Chapel Walk