The Great Debate UK

Osborne’s budget is “stupid” and “unfair”



- David Byrne is a professor at the School of Applied Social Sciences, Durham University. The opinions expressed are his own. -

Reuters’ guest blogger Laurence Copeland omitted two words in his description of Tuesday’s budget – the words being ‘stupid’ and ‘unfair’.

It is stupid first because it is cutting demand – both from the public sector and through multiplier effects across the economy as a whole.

Lord Skidelsky, a Conservative peer, let us remember but also someone who has learned the lessons Keynes taught us, has warned us of the dangers of cutting public sector stimulated demand when the private sector is incapable of responding to a monetary stimulus.