Will they listen to Blanchflower this time?
David Blanchflower spent most of 2008 being ridiculed for arguing that interest rates needed to be cut vigorously to prevent the coming recession. When nearly everyone else was squealing about rising inflation, he was predicting that inflation would drop below the Bank of England’s 2% target in 2009 due to recessionary pressures. How everyone laughed.Well, today his prediction was proved correct. Appropriately enough he has just published a short article on the Guardian website posing the following challenge to our political leaders with characteristic bluntness:
Most of the self-proclaimed experts calling for public spending cuts missed the recession in the first place.I have a question for Gordon Brown, David Cameron and Nick Clegg. What plans do you have to get unemployment down any time soon? If you want to transform a recession into a depression, go ahead and cut public spending.
It couldn’t be clearer and the warning couldn’t come from someone with greater credibility. Policy-makers can’t afford to ignore Danny again!