This blog from leading Oxford economist, Simon Wren-Lewis is well worth a read. Check it out!
Personally, in terms of political ideology, I tend to favor a small-state, and take exception to some of the Wren-Lewis’ argument. I fear that he has missed the point with regard to George Osborne, the UK Chancellor of the Exchequer.
For me, it is better to separate the politics from the economic evidence.
I agree with Wren-Lewis that in terms of strictly economic management, Osborne’s record has been seriously ineffective. In particular, I agree that Osborne’s austerity has been too deep for too long. So I endorse the Wren-Lewis argument about the opportunity cost – under Osborne economic growth has been seriously curtailed.
From the beginning, Osborne’s economic credentials have been questionable. Personally, I believe that Osborne has always been long on political dogma and short on economic argument.
To conclude, I favor small-government but believe that Osborne has precipitated an omni-shambles of savage cuts to public sector services. This blog has repeatedly argued that the Government has not taken a strategic approach to public sector cost reduction. The UK public need to wake-up to the evidence that the UK is only 40% along the journey of ten years of cost cuts.
For me, there would only be one thing worse than Osborne as Chancellor and that would be Osborne as Prime Minister.