Sunday, Feb 14, 2010
Calls for Early Cuts
BBC: Economists urge swift action to reduce budget deficit
The government must act more quickly to cut Britain's huge budget deficit, a group of economists has said.
In a letter to the Sunday Times, the 20 experts say the lack of a credible plan threatens to push up interest rates and undermine the recovery..."there is a compelling case, all else equal, for the first measures beginning to take effect in the 2010/11 fiscal year."
Posted by luckyjim @ 11:31 AM (769 views) Add Comment
3 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. Luckyjim said...
Here is a link to the letter in full.
http://www.timesonline.co.uk/tol/comment/letters/article7026234.ece
2. paul said...
Pushing up interest rates is part of the solution, not part of the problem.
3. sneaker said...
The fact that there is a debate over whether spending needs to be cut shows us that, despite the credit crisis, collectively we have still learned virtually nothing.
If the press is to be believed, the public believes that the government has secret stashes of money somewhere that it can call on for a rainy day.
For those of you (few on this forum, perhaps) who still believe this, please understand that the government is no different from you or I - if it wants to over-reach, it has to borrow. And this comes undone in the bad times.
There's a lot of emotional or wishful arguments - "the government should do this or that" - "we need to carry on spending otherwise we'll be in a mess" - but the only arguments that make any sense are those based on logic. In this case, that means arithmetic and last time I checked, the laws of arithmetic had not been repealed.