‘Austerity’ has been mostly posturing

The “austerity posturing” among UK politicians is “built on a completely phoney premise”, says M&G’s Mike Riddell on the Bondvigilantes.com blog. In reality, there has barely been any austerity at all.

Comparing the UK’s budget deficit (the amount by which public spending overshoots the tax take) to the deficits of the eurozone and the US shows that fiscal consolidation has been much more pronounced elsewhere.

The Europeans are running a budget deficit of around 3% of GDP, a level seen in 2004/2005, while the Americans have reined in their deficit from 10% of GDP in 2009 [...]

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