http://www.crikey.com.au/2009/10/26/uk-economists-fail-to-see-the-recession-on-the-wall/ now with extra source Sun, 12 Feb 2012 09:16:19 +0000 hourly 1 http://wordpress.org/?v=3.2.1 http://www.crikey.com.au/2009/10/26/uk-economists-fail-to-see-the-recession-on-the-wall/#comment-43246 Heathdon McGregor Wed, 28 Oct 2009 03:12:14 +0000 http://www.crikey.com.au/2009/10/26/uk-economists-fail-to-see-the-recession-on-the-wall/#comment-43246 Are economists the new alchemists? Are economists the new alchemists?

]]> http://www.crikey.com.au/2009/10/26/uk-economists-fail-to-see-the-recession-on-the-wall/#comment-42873 Scott Mon, 26 Oct 2009 05:23:18 +0000 http://www.crikey.com.au/2009/10/26/uk-economists-fail-to-see-the-recession-on-the-wall/#comment-42873 Well the brits didn't cut taxes (they actually promised to increase them on incomes over 150,000 pounds) or increase transfer payments to the punters (only an increase in winter fuel allowance). Not exactly designed to prop up consumer spending or improve the economy quickly. They are investing alot in business however, but that can take a while to kick in. I don't know about allocating a third of their infrastructure spending to "Green" projects...the idea with Government spending is to amplify the recovery when it finally comes with economicly important infrastructure..I don't think ideology should come in to it. Problem for the UK though is they already have a lot of debt (55% of GDP in March 09) so they can't do an awful lot of spending. Very different to the Australian experience.. Well the brits didn’t cut taxes (they actually promised to increase them on incomes over 150,000 pounds) or increase transfer payments to the punters (only an increase in winter fuel allowance). Not exactly designed to prop up consumer spending or improve the economy quickly.
They are investing alot in business however, but that can take a while to kick in. I don’t know about allocating a third of their infrastructure spending to “Green” projects…the idea with Government spending is to amplify the recovery when it finally comes with economicly important infrastructure..I don’t think ideology should come in to it.
Problem for the UK though is they already have a lot of debt (55% of GDP in March 09) so they can’t do an awful lot of spending.
Very different to the Australian experience..

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