Paul Krugman: Cameron and the Confidence Fairy: An Update
PK:
Cameron and the Confidence Fairy: An Update: Back in June 2010, when George Osborne unveiled the Cameron government’s austerity plan, it was all about confidence:
Higher interest rates, more business failures, sharper rises in unemployment, and potentially even a catastrophic loss of confidence and the end of the recovery. We cannot let that happen. This Budget is needed to deal with our country’s debts. This Budget is needed to give confidence to our economy. This is the unavoidable Budget.
So how’s it going?
The Cameron government likes to point to low British interest rates — which are not just the result of safe-haven flight into the bonds of every advanced-country government that still has its own currency. Except, actually they are…. Still, the government’s commitment to fiscal responsibility has led to rising consumer confidence. Or, actually, not…. Business confidence! That’s the ticket! Or, well, no…. Still, Serious People are sure that the policy was necessary and is yielding results. I wonder what it would take to convince them otherwise.update/?pagewanted=all#>######
