The Recession: real long-term worries emerge
What is really worrying about today’s bad GDP growth figures is how they compare to other countries. France and Germany are already out of recession and China, and Asia more widely, is bouncing back big time. There is a huge risk that the UK will suffer for years to come as other countries are better placed to seize global market share while we limp along.
Under these conditions it is quite frankly a betrayal of UK citizens’ well-being to fool people into thinking that the most important priority is slashing public spending. Those countries that are now out-performing us have not done so by pulling public money out of the economy. The politicians, commentators and organisations peddling this line need to think about the real consequences of their actions in light of the latest figures.
We may also like to note that many of the economists who got their forecasts so wrong today are often the same ones who regularly pop up bleating about the crisis in public finances and calling for cuts. It’s time we stopped listening to the dismal scientists too closely.