If Only Someone Had Warned Them
Not going so well across the pond:
George Osborne's drastic deficit-cutting programme will have sucked £76bn more out of the economy than he expected by 2015, according to estimates from the International Monetary Fund of the price of austerity.
But many economists believe the dent in growth caused by austerity policies may be larger than first thought, because the financial crisis has left banks starving firms and households of credit; and with many countries cutting back simultaneously, it is harder to fill the gap created by cuts with demand for exports.
Former monetary policy committee member Danny Blanchflower said: "In a way, the surprise is that it's taken everybody so long to work it out: Keynes knew it in the 1930s. This is the 'long, dragging conditions of semi-slump', and the multipliers are likely to be larger when you've got banks that aren't lending and you're coming out of the longest recession in 100 years."
But John Maynard Keynes was a known Islamocommunofascist so it is only right that he be ignored by all the Smart People. The same goes for Paul Krugman.
Still, if only someone had warned that austerity budgets during a recession only prolongs the recession. If only someone had warned them.
Oh well, spilt milk and all that.