This is an excellent, MUST READ blog by leading Oxford economist, Simon Wren-Lewis. Check it out!
Simon-Wren Lewis has become one of my latest heroes in his constant focus on the damage done by excessive austerity. Sadly, many UK newspapers have not reported the damage done from excessive austerity. AND, of course, David Cameron‘s Government has tried to deny the truth and the huge damage done from following ideological rather than evidence-based policy.
Simon Wren-Lewis explains the implications of the latest evidence against the UK Government, coming from the independent OBR.
For me, even now, with the UK economy growing on the back of UK Government sponsored property inflation, there are major risks. Firstly, there is the risk of a property bubble and the UK’s own sub-prime crisis. Secondly, with so little fiscal stimulation to stimulate investments and exports, the UK will still continue to operate way blow it\’s capacity. Thirdly, with so little focus on improving the skill-base of the UK workforce, unemployment will continue stubbornly high.
Let me turn this to an open question:
Given the latest evidence from the OBR, how should the UK Government respond with evidenced-based policy to stimulate growth and jobs up to the recognized UK capacity?