Comments on: Should Obama mimic David Cameron’s austerity? Thu, 21 Jul 2016 07:57:19 +0000 hourly 1 By: AlisdairWilkes Thu, 28 Jul 2011 14:46:04 +0000 The Conservatives were pretty clear prior to the election that they intended to cut spending though as your article suggests, very few of the cuts have really started yet.
It seems there is a reasonably good explanation for the current UK economic anomaly (growth in job creation, manufacturing output and exports but weak overall growth), which the Economist labelled “The great deleveraging”. Britain has a lot of private and corporate debt and businesses and families are doing the same as the state –keeping their heads down and paying off debt.
It seems clear that we will reduce our debts both through paying them down and inflating our way out of them, provided a rate hike doesn’t crush us all.