Posts Tagged ‘Austerity Watch

An interesting post on Chris Dillow’s blog on the difficulties of comparing past and present living standards. Evidently a recent study by the Institute for Fiscal Studies shows that a moderately poor person in Britain today is better off than a reasonably rich one in 1961. This is based on a comparison of real incomes. […]

So David Laws, the minister who was meant to be the point man in the British government’s spending cuts (see 23 May post), has already resigned in an (pretty lame) expenses scandal. Danny Alexander, another Liberal Democrat MP, takes over as chief secretary to the Treasury.

Interesting that David Cameron’s first major speech as Britain’s new prime minister should be on the coalition’s strategy for achieving growth through economic transformation. As is often the case with such things the headline might sound good but the details tell a different story. Cameron says the government’s first priority is economic transformation. He proposes […]

Governments across Europe are starting to implement austerity measures. Gavin Hewitt, the BBC’s Europe editor, even talked of “the contagion of austerity” in a blog post on the subject. Italy is the latest to join the trend with the announcement of a €24 billion (£21 billion) austerity package. It follows others including Britain (see 23 […]

The British edition of this week’s Financial Times leads on a call from David Laws, the chief secretary to the Treasury, a new age of austerity in the public finances. His statement marks a significant shift as it is the first time the government has spoken openly in such terms. Laws, a Liberal Democrat, will […]

Howard Davidowitz, a retail analyst, predicts a long term decline in living standards for the average American consumer. He says ‘the worst is yet to come” as a result of several factors. According to a report on Business Insider they include: * An $8 trillion negative wealth effect from declining home values. * A $10 […]

In response to my request for suggestions for my Austerity Watch column a friend sent me a link to a useful article from the 4 January edition of the British Observer newspaper. In it Paul Harris reported from New York on how luxury is increasingly being considered shameful. Among its useful points and references: * […]

Austerity Watch

In: Uncategorized

10 Feb 2009

I have decided to start an occasional Austerity Watch column to monitor the trend towards increasingly open support for austerity. First, to recap my general views on the subject: * Austerity is implicit in growth scepticism. * However, only a minority of growth sceptics are currently openly demanding austerity. It tends to be more implicit. […]

Belatedly caught up with an article on the likely social impact of the recession by Tyler Cowen, a professor of economics at George Mason University, in last Sunday’s New York Times. Among other things he predicts: • A return to less expensive activities: “They may take the form of greater interest in free content on […]

Spiked has published an extended version of my review of Paul Krugman’s book on “depression economics”. An earlier version appeared in Fund Strategy. Sean Collins has a review in the same issue of the spiked review of books which examines how the current financial crisis can be linked to the real economy.