The austerity fairy story

In my last column I referred to austerity as “fake”. You may have wondered what I meant. I’m not the only person to have understood this. Prior to the election Paul Krugman, the Nobel Prize winning economist, wrote an article in the Guardian calling austerity “a delusion”. Other people have described it as “a con” or as “a myth”. Two thirds of economists surveyed by the Centre for Macroeconomics disagreed with the statement that Government policies since 2010 had a “positive effect” on the economy. Even the Treasury’s own forecaster, the Office for Budget Responsibility, estimated that austerity slowed down … Continue reading The austerity fairy story