British ausetrity kills their economy

[eridani]

http://www.truthout.org/britain-still-awaits-good-results-bad-ideas/1305036855


The bad gross domestic product number for Britain, announced on April 27, wasn’t a surprise — in fact, judging from market response, investors seem to have expected something even worse. Still, if you step back and look at what has been happening, it’s doubleplusungood: zero growth over the past six months, with every reason to be worried looking forward, as Prime Minister David Cameron’s austerity bites deeper.

Jonathan Portes, director of the National Institute of Economic and Social Research in Britain, got to the nub of it in an article for the Financial Times that day: “On fiscal policy, the message is that we should listen to economists, not credit rating agencies. Most mainstream economists argued that the impact of the government’s fiscal consolidation on confidence and consumer demand would be negative; so it has proved,” he wrote.

“Meanwhile, the argument that fiscal overkill was necessary to appease the credit rating agencies has again been disproved by market reaction — or the lack of it — to the Standard & Poor’s outlook warning last week in America, where U.S. Treasury yields hardly budged.”

In short, there is no confidence fairy; and S.&P. can call invisible bond vigilantes from the vasty deep, but they won’t actually come when called.

[FiveGoodMen]

1. K&R

[corpseratemedia]

2. repubs can't use it to shore up their cut cut cut arguments

[Turbineguy]

3. The difference is

that the Britsh government is concerned about killing the economy and therefore will likely make adjustments. With the repubs, ideology trumps common sense and the greater good so they will destroy the US economy while giving tax cuts to the wealthy.