20 Mar '13, 2pm

@nef

Our approaching triple-dip recession was a direct result of the government’s flawed economic strategy. The case for austerity rests on two false premises: that the previous government had been spending excessively, and the government debt and deficit are the main threat to our economic stability. But the real threat to stability lies in our financial system – which, following the crash, led the UK into recession, decreasing tax revenues while pushing up government debt. The government’s austerity strategy was founded on two other incorrect beliefs. First, the Coalition assumed that the private sector would fill the gap created by public spending cuts. In fact, business investment has grown by less than a third of the rate the government forecast in 2011 and 2012 and shows no sign of rising to the levels required to prompt an economic recovery. Second, the strategy relied o...

Full article: http://www.neweconomics.org/publications/why-we-need-a-ne...

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