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.”
62 Responses to “FT pulls apart austerity economics”
Newsbot9
When you steal from everyone else, and have a lot of natural resources, it’s amazing what happens.
Newsbot9
The reason people are not spending is because they are looking at pay cuts because of your economic death-cycle policies caused by unmitigated fiscal contraction (austerity).
It’s obvious that your simple-minded prescription fails the second Germany and the Nordics are considered, try again with a working plan.
You’re not only an austerity denier, you’re a recession denier. Your wealth is soaring, screw the 99%!
Newsbot9
Yes, of course you want to slash already very low benefits so you can kill ever-more people.
Newsbot9
And have made virtually every deposit scheme in the EU worthless. Don’t forget that. Tens of billions of damage are being done right now as a result.
Newsbot9
Yes, the clue that you’re a Neo-Nazi and denier. You of course try to pass off your murdering onto the left.