Sunday, May 16, 2010
Blanchflower presses the "FEAR" button
Guardian: George Osborne starts to cut spending
"George Osborne will set out plans for an audit of the country's finances and begin the process of cutting public spending amid claims from ministers that the Labour government hid "crazy" spending commitments to play down the scale of the nation's deficit. Labour, in return, said the government was attempting to offset the blame for savage spending cuts that will be introduced in coming months, while a former member of the Bank of England monetary policy committee, economist David Blanchflower, warned that talking the economy down risked a "death spiral" ".
Posted by alan @ 10:29 PM (1048 views) Add Comment
8 Comments
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1. devo said...
why the government wants to scare everybody and talk down the economy i really don't know. why would you want to talk down the economy? i don't understand it. they need to do everything they can to bolster the economy. the chancellor is talking it down and risks scaring the markets. gordon brown saved this country from a great depression. the new government risks a death spiral.
2. enuii said...
Devo, your getting paranoid, this is merely politicians settiing their stall out and proving that the previous stall holder was worse than people thought so what they have on offer looks better. It's exactly what Blair/Brown did for years with their little pre-budget leaks i.e. saying something like petrol would be increased by 10p per litre then when it was only a 2p increase everyone thought it was great!
Just sit back and watch, it will all become less alarming once you think about it.
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4. p. doff said...
Think Devo might have had his tongue a wee bit in his cheek there enuii. He knows it doesn't become less alarming - quite the opposite in fact.
5. cat and canary said...
Well I initially thought Devo was having a laugh, being sarcastic,
...but actually he was quoting Blanchflower from the posted article. Unbelievable!! So I guess Blanchflower thinks the recent crisis in Greece was just due to a few scaremongers does he? Perhaps Greek debt isn't real, and it all exist in some kind of meta-economy that Blanchflower can theorize about?!
So there you have it, "Gordon Brown saved this country from a great depression" Prof. Blanchflower
6. p. doff said...
@ 4 ''Well I initially thought Devo was having a laugh, being sarcastic'',
He was!
7. mark wadsworth said...
Now that is really scary!!
I had also assumed that Devo was being tongue in cheek (and if not, fair play, a lot of people say things like this, it is not a crime to have an opinion), but if members of the BoE MPC spout drivel like this in public then we are truly run by madmen.
8. drewster said...
Yes, very worrying indeed - devo's quote is from David Blanchflower!
The government aren't talking down the economy. They're talking down public spending and talking up tax rises. It's what every new government does when they enter office: "Oh my, the problem is far worse than we thought! we're going to have to scrap all those loony election pledges!" It sounds plausible though - commentators have warned about Gordon Brown's scorched earth policy many times over the last year.