How much has UK austerity cost (so far)? Simon Wren-Lewis – Mainly Macro

Austerity

Austerity (Photo credit: GoatChild)

This is an excellent MUST READ article from Oxford economist Simon Wren-Lewis, writing in his Mainly Macro blog. Check it out!

via mainly macro: How much has austerity cost (so far)?

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?

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A True Fracking Story – UK Take Heed – Part 1

English: Keep Calm and Carry On UK government ...

English: Keep Calm and Carry On UK government poster (Photo credit: Wikipedia)

The hottest issue in the UK at the moment is no longer austerity, nor the melt-down of the NHS; the really hot issue is the UK  Government‘s policy switch in favor of fracking.

Already, we are seeing protests up and down the country, political backtracking, and criticisms of the UK’s energy policy.

Personally, I am a passionate believer in protecting the environment for future generations; on the other hand, I am a realist about UK energy costs and the weak state of the UK economy, unnecessarily punished by excessive austerity.

A review of the history of fracking will show deep concerns about safety and environmental risks. Of course, the UK Government will promise safeguards but in an age of austerity, from a Government that has brought the NHS to it’s knees, I have deep reservations about the risks. I struggle to believe that David Cameron’s Government can effectively mitigate the environmental risks effectively.

I have a German friend who lives in Texas, US, and he has blogged extensively about what happened when the fracking came to town. I shall be reblogging his story, on a daily basis, starting tomorrow.

Watch this space!

 

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