Austerity continues to ravage economic recovery - Diary of a Benefit Scrounger
July 20, 2012
So today, the Telegraph (of all papers) carried an article on IMF warnings to relax our austerity programme. They point out that:
“The IMF said that the British economy may not be able to cope with the scale of austerity planned for 2013-14 and suggested there was little evidence to indicate fiscal easing would provoke a strong adverse reaction from markets”
They then went on to slash growth forecasts for the UK by a bigger margin than any other developed nation, to just 0.2% having predicted 0.8% just three months ago. They have cut growth forecasts for next year from 2% to 1.4%.
The economy is in a much worse mess than we feared. Everyone expected growth to be returning by now, instead, we are mired in recession and that recession is much deeper and lasting longer than anyone thought even a few months ago. It is almost certainly at least partially, a direct result of austerity policies.