FT.com / UK - IMF urges UK to control public finances.
Some things don't change.
The economic policies prescribed by the IMF are one of them.
Have they never heard of the multiplier?
Government spending gets us out of recession. Cuts worsen them. OK, it has to be the right spending, I agree. But a simple presecription of cuts is guaranteed to fail.
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I agree with you Richard. There are two very good Newsnight pieces from Paul Mason on what’s happening in Latvia and Ukraine, and how IMF-prescribed cuts in spending and public sector wages are making things worse not better, here.
These guys really are an economic wrecking crew, no doubt about it. Joseph Stiglitz realised this a decade ago, and everything he said in “Globalisation and Its Discontents” has been proved right many times since.
perhaps you have not heard? The empirical evidence demonstrates that Government spending does not get us out of recession.
Yeah, Alistair, What empirical evidence that holds water if its for
a) energy saving via super-insulation?
b) renewable energy that works – subsidy needed etc?
c) sustainable transport, reducing future oil and gas use/price?
d) long-term planning against rapid onset of sea rise?
all these create jobs and reduce SS and health bills by keeping people active, mentally and physically. Improving infrastructure. Don’t they?
And don’t we need recession of consumer spending anyway? Last time i looked car congestion was still a problem, what happens when all Asia is in a car?
It depends on the spending. There is a mass of infrastructure projects almost ready to start. Good infrastructure creates land value. Land value can be collected unavoidably through the tax system.