Osborne has missed one of his key targets to improve the public
finances and said he would extend austerity by another year as Britain’s
independent budget watchdog slashed its economic growth forecasts.
In addition, with growth slowing, the goals of austerity -- that is, the reason why we're engaging in this policy -- are being pushed out: Mr
Osborne said Britain would miss its target to have debt falling by
2015-16 as a percentage of national income by a year. He also said he
would need to extend austerity by another year to 2018 to close the
Let's think this one through. The UK has been implementing an austerity budget since roughly mid-2010. Here are the results:
Just to review:
1.) England is implementing austerity
2.) They are doing this to "clean up their government finances" in the hopes that this "cleaning up" would restore confidence in the UK economy.
3.) The "cleaning up" is leading to contracting growth, which is lowering confidence in the UK economy -- the exact opposite of what was intended from the first place
4.) So, the best plan forward is ... more austerity.
Now, I'm still in a pretty heavily medicated, post surgery situation. In my condition, the above makes no sense.
I'm on Linked In and Twitter (@captivelawyer). Silver Oz's Linked In name is @silver_oz. NDD is a fossil and may be reached by etching a picture in stone on the wall of a cave.
The Bonddad Economic History Project
At the beginning of 2012, I decided to start looking at the actual, statistical history of the US economy starting in 1950. The reason is simple: to find out what really happened. So, when you see title of a post that begins with a year such as 1957, followed by "employment" or "Fed policy: you know what it's for. You can also access the information by typing in BE for Bonddad econ and a year to find information on a particular year.
Here is a link to pages that contain links to all the posts on the years listed.