- Interesting they make little stress on the issue of unemployment 2.47 million (and disguised unemployment with 5 million on non-unemployment benefits)
- It is interesting they don't seem so concerned about the threat of a double dip recession and the continued existence of spare capacity.
- I wonder if they have noticed the experience of Ireland. - In Ireland savage spending cuts were implement to tackle the 'most serious issue' in the Irish economy. The result is a fall in economic growth of -7% and a credit rating downgrade as markets fear with such poor growth the budget situation is likely to deteriorate - despite spending cuts. (Saving and Austerity)
However, you can't solve a structural deficit by imposing immediate austerity which pushes the economy back into recession. This can be counter-productive. My concern is the widespread acceptance that we need to suffer; No Pain No Gain - it's almost as if people think - debt bad - and so we deserve another recession.
Undoubtedly, there will be the retort - but the bond market! The bond market won't tolerate anything less than immediate austerity. But, the bond market is yet to explode as many fear, and as Ireland show if you want to reassure the bond market it is also important to maintain strong growth which is vital for reducing levels of debt to GDP.