Ann Pettifor takes Mr Osborne to task for the latest figures on borrowing that show his austerity plan is working the way he planned.
Ann Pettifor is the co-founder of the think tank PRIME
One has to feel sorry for the chancellor. Many mainstream economists – in both the City and academia – backed him to the hilt: egging on his austerity policies, and boldly forecasting the rate at which the deficit would fall. The governor of the Bank of England caused controversy by endorsing the strategy. Markets greeted the austerity programme with euphoria. And No 10 was castigated for preparing a plan B.
Professor Chick and I were among the few to sound a warning, in our June, 2010 publication: “The economic consequences of Mr. Osborne” we insisted that once the private banking crisis had been transmitted to the real economy, fiscal consolidation would not ‘slash’ the government’s debt, but cause it to rise. Our argument was not based on ideological conviction, but on a century’s worth of macroeconomic evidence.
Today, those who shared our fears have been vindicated – even before the coalition’s deep, job-destroying spending cuts have been fully implemented. The announcement by the Office for National Statistics (ONS) that the deficit had widened dramatically in April by £10 billion -the largest April budget shortfall since monthly records began in 1993 – has been seized upon in shock by the chancellor’s friends in the media and the City. Without any apparent qualms, they have fallen over themselves to deplore the rise, and predict economic gloom.
Mr Osborne ought to choose his friends (and economic advisers) more carefully.
To reach hundreds of thousands of new readers and to make the biggest impact we can in the next general election, we need to grow our donor base substantially.
That's why in 2024, we are seeking to generate 150 additional regular donors to support Left Foot Forward's work.
We still need another 124 people to donate to hit the target. You can help. Donate today.
37 Responses to “The consequences of Mr Osborne: More deficit”
Jeni Acelas
RT @leftfootfwd: The consequences of Mr Osborne: More deficit http://t.co/VMNqYDr
matthew fox
Glad to see Anon E Mouse is still missing the point. Tax Revenues where down and spending is up.
This is Osborne’s economy and it seems Conservative are running away from him.
Tory Economics of the Madhouse
Thatcher’s views on Osborne’s obsolete uber IMF 1970s third world economic policy would be thus: “Too much, too fast, too deep. No, no, no.”
And she would be right. Funny old world where Ed Balls and Margaret Thatcher are singing from the same sing sheet.
Kevin Richards
Looks like its gone a bit pearshaped Mr Osborne-RT @leftfootfwd: The consequences of Mr Osborne: More deficit http://t.co/t3W06Uc
Kevin Richards
Looks like its gone a bit pearshaped Mr Osborne-RT @leftfootfwd: The consequences of Mr Osborne: More deficit http://t.co/t3W06Uc