Sunday, November 01, 2009

You can’t cut your way out of a recession

I’ve been very taken with Giles Wilkes’s writing before, so I expect that his latest piece, ‘Slash and grow? Spending cuts and economic recovery’, should be well worth a read.

A couple of quotes that stood out from his summary:

Public debts have risen largely to allow private indebtedness to fall without producing catastrophic consequences for the economy.

If the next British government proceeds upon the basis of deficit reduction before growth, it risks achieving neither.

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