The fiscal choices at UK Spending Review 2013 and beyond
June 20, 2013 9:55 AM Subscribe
"The government’s plans for deficit reduction have increasingly stark implications for public spending as their deadline draws nearer, according to new Resolution Foundation analysis.
While overall expenditure is set to remain relatively flat in 2015-16 (the period covered by the latest Spending Review) the pace of reduction in total government spending is due to increase significantly in the two subsequent year"
Why do we think the Government will meet these spending plans? They haven't yet. The "austerity" has seen us running a huge deficit every year since the crash. Osborne keeps getting pilloried for missing his projections. Guardian illustration of the continued colossal scale of Government borrowing.
Oh, and these are also the Labour Party's plans for deficit reduction as of last week. Apparently they're a great plan according to Ed Balls, even though before they were a terrible idea for wrecking the economy. So apparently we'll get these plans whoever wins next time, even though they're historically incredible.
And who knows? Balls might have been right before. Balls might be right now. I'm not convinced the UK Government could have spent our way out of this given the state of our trading partners: we're not big enough. Then again, it's not like the last few years have gone well!
posted by alasdair at 12:24 PM on June 20, 2013
Oh, and these are also the Labour Party's plans for deficit reduction as of last week. Apparently they're a great plan according to Ed Balls, even though before they were a terrible idea for wrecking the economy. So apparently we'll get these plans whoever wins next time, even though they're historically incredible.
And who knows? Balls might have been right before. Balls might be right now. I'm not convinced the UK Government could have spent our way out of this given the state of our trading partners: we're not big enough. Then again, it's not like the last few years have gone well!
posted by alasdair at 12:24 PM on June 20, 2013
Meanwhile, Osborne missed the boat to fiscally push demand up, rather than cut, in the face of a debt deflation.
The US pushed much harder fiscally and monetarily, bottomed out harder but restored the growth rate eventually, and this week hints that monetary stimulus will dry up later this year.
Interest rates will bounce up on this one, and yet again the UK is going against the grain, as growth here will really take a hit when that happens and nothing but promises of deflationary fiscal forces in the future.
And the deficit will take a bigger hit as low growth decreasing revenues meet more borrowing, meets at a higher borrowing cost.
This fucking curtains heir is a total moron.
posted by C.A.S. at 1:35 PM on June 20, 2013
The US pushed much harder fiscally and monetarily, bottomed out harder but restored the growth rate eventually, and this week hints that monetary stimulus will dry up later this year.
Interest rates will bounce up on this one, and yet again the UK is going against the grain, as growth here will really take a hit when that happens and nothing but promises of deflationary fiscal forces in the future.
And the deficit will take a bigger hit as low growth decreasing revenues meet more borrowing, meets at a higher borrowing cost.
This fucking curtains heir is a total moron.
posted by C.A.S. at 1:35 PM on June 20, 2013
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posted by Happy Dave at 11:18 AM on June 20, 2013 [2 favorites]