Austerity is over. Allegedly.

  • Austerity is over: after five years of belt tightening, the IMF says the rich world has stopped cutting


    Austerity is over as governments across the rich world increased spending last year and plan to keep their wallets open for the foreseeable future.


    After five years of belt tightening, the International Monetary Fund says the era of spending cuts that followed the financial crisisis now at an end.


    “Advanced economies eased their fiscal stance by one-fifth of 1pc of GDP in 2016, breaking a five-year trend of gradual fiscal consolidation,” said the IMF in its fiscal monitor.


    “Their aggregate fiscal stance is expected to remain broadly neutral in 2017 as well as in the following years."


    The British Government is still trying to reduce the deficit but at a slower pace, as Philip Hammond, the Chancellor, wanted to ease spending cuts following the vote for Brexit last year.


    http://www.telegraph.co.uk/bus…-imf-says-rich-world-has/


    I don't know what if any difference this news may make to Theresa's manifesto but I'm sure it's going to be included in the usual 'Jam tomorrow.' promises.;)

  • There never was any austerity, not really. If there had been, our debt pile would have reduced rather than increased.

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  • Indeed, those who are squealing about "cuts" just mean that the meteoric increases in public expenditure, especially by the last Labour government*, have been reined in to something more sustainable in the long run. Hopefully the bloated foreign aid budget can be pruned together with the EU contributions to give some help to public services where needed.


    *Has a nice ring of finality. :D

    History is much like an Endless Waltz. The three beats of war, peace and revolution continue on forever.

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