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
The clue is in the name. National SOCIALISTS. Their economical policy was left of center. Combined with them being murdering scum like a lot of other socialists.
LB
It collapsed because it was running a fraud. Debts off the books.
Same will happen here for the identical reasons. 5,300 bn of pensions debts off the books.
LB
Alberto Alesina & Silvia Ardagna,Large changes in fiscal policy: taxes versus spending, inTax
Policy and the Economy, Vol. 24 (Univ. of Chicago Press, 2010).OECD countries (fiscal stimuli and fiscal adjustments, 1970 to 2007)
Fiscal stimuli based upon tax cuts more likely to increase growth than those based upon spending increases. Fiscal consolidations based upon spending cuts and no tax increases are more likely to succeed at reducing deficits and debt and less likely to create recessions.
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So what’s the Condems doing and Labour advocating?
1. Higher taxes
2. More spending.
Exactly the wrong policy, which is why its going Pete Tong.
George Winstanley
Gwhizz Perhaps many of you never think to look at what is happening in the E.U. Parliment.s ..Barroso hits out at the biggest borrowers in the E.U. by far Guess who? This government of course, Nigel Farage like him or hate him you should also listen to how he speaks about all our E.U. problems.He talks straight and to the point about our country and the E.U.
anon
“Why is it with every discussion Nazi’s inevitably come up?”
Welcome to the internet…