The Financial Times has this morning produced a blinding set of graphs which highlight how fiscal austerity has negatively impacted on the GDP of various European economies.
The Financial Times (£) has this morning produced a blinding set of graphs which highlight how fiscal austerity has had a negative impacted on the GDP of various European economies.
Essentially, the greater each government’s austerity drive the larger the drop in GDP. Are you listening, Mr Osborne? The third graph (furthest to the right) is the important one (the horizontal line depicts the level of austerity from 2009-2012 and the vertical line shows the fall in GDP.
The coup de grace is delivered, however, by Paul Krugman of The New York Times:
“Austerity was costly for the afflicted economies: the greater the tightening between 2009 and 2012, according to the International Monetary Fund, the bigger the fall in output.”
Thus, FT journalist Martin Wolf adds, “the panic that justified the UK coalition government’s turn to a long-term programme of austerity was a mistake“.
“In the long run, the fiscal deficit must close. In the short run, the UK has the chance to push growth. It should take it. So should the US.”
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62 Responses to “FT pulls apart austerity economics”
LB
However, over all spending is rising by billions and billions.
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money to job seekers allowance, housing
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So take the change in spending
So look at the change in unemployment.
Divide one by the other.
If you are right, then the unemployed are being paid unbelievable sums
henrytinsley
The Nazis weren’t left wing. They killed and imprisoned lefties and trade unionists.
henrytinsley
Iceland has a left wing government. Last year their economy grew nicely, unemployment is down as if their deficit. And I don’t think they murder their citizens.
Jon Johannsson
Iceland’s most likely omitted because it’s not part of the EU, and it’s economy is tiny compared to those on the graphs. Yes Iceland liquidized several of the banks, and in some instances jail bankers and seize their assets, especially those trying to escape the country with everything they had.
Why is it with every discussion Nazi’s inevitably come up? and who in their right mind associates them with centre-left economics?
henrytinsley
Conservative leaders Arthur Balfour and Neville Chamberlain were members of the Eugenics Society too. Beveridge was a Liberal (and briefly a Liberal MP).