Britons squeamish to spend their savings are jeopardising our economic recovery
The economic recovery is under threat. British consumers are saving and not spending. The Office for Budget Responsibility (OBR) estimates that during lockdown, households accumulated a massive £180bn of so-called “excess savings”. Earlier in the year, most economic forecasts assumed that these would be run down. Lockdown had constrained people’s normal behaviour and with the […]
Keynesians are wrong: Cutting public spending can boost economic growth
The key aim of George Osborne’s economic policy has been to eliminate the financial deficit of the public sector. The main way of trying to achieve has been to squeeze public spending. The orthodox economic textbooks maintain that this withdraws demand from the economy, and so leads to the growth rate being slower than it […]
