Monday, May 11, 2015

Was Keynes responsible for Labour's defeat?

It certainly seems that way.  Despite dire warnings from the Keynesians of a double dip recession should the UK Conservatives' implement austerity policies...

...the government’s much-derided policy of fiscal stabilisation has also been a success, even if the extent of deficit reduction fell short of Mr Osborne’s original goal. According to the International Monetary Fund, the general government deficit has been nearly halved from 10 per cent in 2009 to 5.7 per cent last year; the structural deficit more than halved from 9.8 per cent to 4.2 per cent. The net public debt has been stabilised at roughly the same level relative to GDP as that of the US.  

Few governments since 1945 have achieved comparable economic results from such a difficult starting point. If the opinion polls had been right, and the Tories had not won this election, it would have been a travesty.

1 comment:

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