The Con-Lib Government’s policies already appear to be having a highly negative impact on economic growth – notwithstanding David Cameron’s warm words to the CBI today.

It’s widely predicted that tomorrow’s provisional growth figures for the 3rd quarter will show a dramatic slowing from the first half of the year.
This will be as a direct result of the disastrous emergency budget after the election and retrenchment by individuals, private and public bodies and the rest of the Government’s relentlessly pessimistic austerity gloom.
This is exactly what Labour and most economists have been warning about. Cut too far and too deep and you hit growth, costs jobs and ensure the long terms cost of reducing the deficit is greater than it need have been.
What is particularly scary about the Government’s approach is they don’t appear to have a plan B. They appear lashed to the mast of fiscal austerity whatever happens – even if growth continues to plummet.

How long can the Liberal Democrats – who were out and proud Keynesians before the election – continue to stomach such madness?

This entry was posted on Monday, October 25th, 2010 at 5:56 pm and is filed under Ben's Brain Bubbles. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.