The ‘official’ cost of austerity Simon Wren-Lewis – Mainly Macro


austerity (Photo credit: 401(K) 2013)

In his latest blog, Oxford economist, Simon Wren-Lewis, takes a hard look at the latest research evidence into the cost of austerity in Europe. The article plus the underlying research paper are STRONGLY RECOMMENDED if you are looking for hard data on the impact of austerity policies.

via The ‘official’ cost of austerity Simon Wren-Lewis – Mainly Macro.

For the busy reader, let me cite Wren-Lewis’ overview:

That means that over 3 years nearly 10% of Eurozone GDP has been needlessly lost through mistakes in policy. This is not the wild claim of a mad macroeconomist, but what simple analysis backed up by mainstream models tell us.

Wren Lewis also looks at the impact on the UK, based upon OBR data but alludes to the risk that the OBR data may be under-stating the consequences for the UK.

Let me turn this to an open question:

Why are Europe’s political leaders and he mainstream media in such a hurry to whitewash the impact of austerity in Europe?

Any thoughts?

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12 responses

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  11. The impact on the UK will be shown when the UN reports in March 2014 into the preventable deaths and suicides caused by the Bedroom Tax and the Work Capability Assessment to the disabled and chronic sick of any age.

    It was an EU Directive that lost women especially their rightful payout by age of state pension.

    The over 50s suffer ageism in the UK in job recruitment. Women have borne the lion share of public sector Austerity Job Cuts and more will come, as 80% of Austerity has yet to hit the UK.

    Most over 50s unemployed women is due to being disabled and/or chronic sick and these benefits are being lost or never gained, with no other source of income in a great many cases, as the 1950s Baby Boomer generation may have never been able to gain a works pension, been too low waged to save and now the Pension Bill and in 2016/17 the Flat Rate Pension will leave many thousands with no state pension at all forever.

    No job, no benefit, no state pension, little or no savings or work or private pension. There is a book out that has the right description of millions in the UK – Recession Hurts, Austerity Kills, David Stuckler (Amazon).

    So I am endeavouring for someone to support / join free membership / volunteer public speaker to help me start a new political party in the UK called The Swans new party
    Both Left and Right, not leaving anyone to starve but not soaking the rich.

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