Your editorial last week was way too lenient on George Osborne (Celebrate the end of austerity. But the new cash must be spent wisely 10.11.19). Admittedly, he did have "important support" from the International Monetary Fund and the OECD when he declared in 2010 that austerity measures were "the only way to bring the deficit under control", but by January 2013, things had changed significantly.
It was then that the IMF`s chief economist Olivier Blanchard, told the then chancellor of the need for a "reassessment of fiscal policy", less than two months before the March budget (Austerity plan is failing, IMF tells Osborne, 24.01.13). His recent work on fiscal multipliers had shown him the devastating effects tax and spending cuts were having on the wider economy, but did the arrogant Osborne take any notice?
What we saw was the growth forecast for 2013 halved, and debt as a share of GDP to increase from 75.9% to 85.6%, whilst government department budgets were to see cuts by 1% in each of the following two years, £11.5bn further cuts earmarked for 2015-6, corporation tax cut to 20%, and the !% cap on public sector pay extended for another two years.
Osborne deliberately ignored expert advice, and continued with his callous austerity policies, so that now billions have to be spent to "repair pretty much all of the fraying fabric of public services, infrastructure, amenities and welfare provision". Most certainly, history will not forgive Osborne; December`s voters should not forget, either, which parties and politicians supported Osborne in his duplicitous scheme!
No comments:
Post a Comment