Wednesday, April 25, 2012

Keynes was right and the Austerians are wrong

Via Paul Krugman comes a report from Henry Blodget that a few European leaders have finally figured out: Keynes was right and the Austerians are wrong. And BBC reports that the UK economy has seen real GDP decline for two consecutive quarters. BBC also notes:
Prime Minister David Cameron said the figures were "very, very disappointing". "I don't seek to excuse them, I don't seek to try to explain them away," he said at Prime Minister's Questions. "There is no complacency at all in this government in dealing with what is a very tough situation, which frankly has just got tougher." He said it was "painstaking, difficult" work, but the government would stick with its plans and do "everything we can" to generate growth.
Does he mean sticking to austerity, which likely caused the economic downturn?


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