To the Austerity Advocates

27 Jan

Quote from an unknown source,–  “And this in turn reminds me about why republicans always travel in threes: one can read, one can write and one has to keep an eye on the 2 intellectuals.”

Apparently the austerity measures invoked in Britain in order to bring their economy back, ( similar to the direction republicans are trying to get the US to go) — are failing miserably.

From Brad DeLong this morning:

The British Economy Is Now Doing Worse than it Did in the Great Depression

Source: NIESR, via the Guardian.

Yep. This many months after the start of the Great Depression, the British economy was rapidly converging back to its pre-depression level of production under Chancellor of the Exchequer Neville Chamberlain’s policy of using stimulative policies to restore the price level to its pre-Great Depression trajectory.

By contrast, the Cameron-Osborne policies of expansion-through-austerity have produced a flatline for real GDP, and the odds are high that British real GDP is headed down again.

In less than a year, if current forecasts come true, the Cameron-Osborne Depression will not be the worst depression in Britain since the Great Depression, but the worst depression in Britain… probably ever.

That is quite an accomplishment.

Policy makers elsewhere in the world take note: starving yourself is no road to health, and pushing unemployment higher now is no road to market confidence.

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Posted by on January 27, 2012 in Economy, foreign affairs, Politics


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