An unbelievably convenient boost to demand in Britain has come in the nick of electoral time for the ConservativesWhen it comes to the economy, the prime minister and chancellor are enjoying the luck of the devil. After the financial crisis struck in 2007-09, they opposed the Keynesian measures necessary to avert a 1930s-style great depression; and when they assumed the reins of office in 2010 they made misleading comparisons between the state of the British economy and that of Greece and introduced wholly unnecessary “austerity” measures.These latter not only stopped the burgeoning economic recovery in its tracks: they sapped the animal spirits of entrepreneurs and wrecked any hope of the boost to confidence they were supposed to encourage. There followed several years of “flatlining” and missed investment opportunities in the public and private sectors.Instead of counteracting the weakness in demand, the coalition took measures to aggravate it. I am not making this up Continue reading...
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