This is an excellent MUST READ article from Oxford economist Simon Wren-Lewis, writing in his Mainly Macro blog. Check it out!
The staggering cost of excessive austerity to every UK household is slowly beginning to dawn on the nation. That’s the opportunity cost of the “pound in your pocket” lost under David Cameron’s Government. Add to that the huge social cost of collapsing public services, like heathcare and social care to name the most obvious. Add to that cost of unnecessarily political meddling and bungling bureaucrats perpetuating waste, and the implications are quite stunning.
Of course, watch the political classes carefully with their smoke and mirrors tricks, and it looks like with wave of “uncle David’s magic wand” the UK shall once again have a consumer led recovery on the back of anticipated property inflation.
So everything will be OK in time for next election?
- Austerity has cost the UK £3,500 for every household (newstatesman.com)
- Simon Wren-Lewis: OK, You Have Demonstrated You Are Serious About the Long-Run Deficit. Now Back Off on the Austerity for a While… (delong.typepad.com)
- Simon Wren-Lewis: DeLong-Summers Smackdown Watch: Austerity May Be Self-Defeating Even When Treasury Interest Rates Contain a Large Risk Premium (delong.typepad.com)
- The Intelligent Simon Wren-Lewis and the Thoughtful Antonio Fatas vs. the Hacks of Sol III (delong.typepad.com)
- ‘Why Politicians Ignore Economists on Austerity’ (economistsview.typepad.com)
- The Purpose of Macroeconomic Policy? (economistsview.typepad.com)
- ‘Tired Old Debates’ (economistsview.typepad.com)
- A True Fracking Story – UK Take Heed – Part 1 (dralfoldman.com)
- Wren-Lewis on the BIS annual report (eurointelligence.com)