Friday, October 22, 2010

David Blanchflower Says George Osborne's, CSR is a Terrible, Terrible Mistake

Well worth listening to this video clip.

Greatest Macro Economic Mistake This Century!
The first Bank of England Official to predict the economic recession Former Bank of England Adviser David Blanchflower.
David Blanchflower says that the UK austerity measures are the “greatest macro economic mistake in this century“.
What George Osborne says is abject nonsense, large numbers of people around the world are opposing this Blanchflower has been in the States this week and says people are saying that this is the most incredible experiment, they are sitting and watching and waiting and will try not to make the same mistake. It certainly looks like this plan was set up early last year when the economy was booming, George Osborne doesn’t seem to have actually noticed from the time this coalition took power, things have actually turned down, business confidence is collapsing consumer confidence is collapsing trade figures are terrible, unemployment has started to rise, the fact that these businessmen are said this is a good idea is fine, but they are not economists and they probably do not know what is going on. This looks like it is going to turn the economy right down and it is a terrible, terrible mistake.
Already we are seeing groups of people opposed to it and those groups are going to rise a lot within the next few days.
The best thing to do is put some tax cuts in and grow yourself out , invest in the infrastructure, we are desperately in danger of a double dip, the last thing you do in a terrible recession is make the recession worse, generate some growth, put tax cuts in and grow your way out. There is no evidence at all from anywhere to suggest that this kind of approach will work, the only evidence we have of this kind of strategy is that it pushes economies downwards and it is a very dangerous thing to do extremely foolish and it is outrageous that the chancellor says that everyone is supporting him and this is the only way to go, it is abject nonsense!
We clearly have to deal with the deficit but there is no need to do this over one week or one year .
George Osborne’s real problem is that he has no plan B.

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