Economy

Feb 25, 2013

UK downgrade another blow for austeritynomics

The downgrade of the UK's credit rating again demonstrates how austerity can't even achieve its intended fiscal goals, let alone protect an economy. Glenn Dyer and Bernard Keane report.

The downgrading of the UK government’s credit rating by Moody’s on the weekend sends a strong message to Australian politicians and fiscally hairy-chested media commentators as we head toward an election: austerity not merely doesn’t work, it won’t even save a country from the loss of its AAA credit rating.

Moody’s decision was a massive humiliation for Chancellor George Osborne. He virtually staked his chancellorship on a commitment that spending cuts were needed to preserve the UK’s triple-A rating, which he claimed in 2009 had been endangered by the Brown Labour government.

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One thought on “UK downgrade another blow for austeritynomics

  1. Bill Hilliger

    Just wait until the Abbott led coalition get their hands on the fiscal levers. Australia will be heading in the same direction.

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