Duncan’s Economic Blog

So much news…

Posted in Uncategorized by duncanseconomicblog on June 11, 2009

So much economic news. And I’m annoyingly busy at work…

But…

Paul summarises the good news.

Chris reckons the recession might be over. Personally I’m not so sure. But the terrifying falls in GDP seen in Q4 last year and Q1 this year are in the past. Regardless unemployment will keep rising. My thoughts on this were set out over at LabourList three weeks back.

Government action has worked in stabilising the economy. Well done.

Hopi notes this is good for Mr Darling.

Charlie is well worth a read on the question of what next?

Finally Adam, at the TUC blog, has a superb post up, which should be read in conjunction with Chris.

There is a very widely held assumption in policy and media circles now that cuts are necessary and inevitable. The only disagreement is over how much and when. Apparently, those hard-headed bond traders and credit raters will only be satisfied when they see unemployed nurses weeping outside Jobcentres. It seems to me though, there is one question no-one wants to ask: will cutting spending actually reduce public debt?

Right back to work.

3 Responses

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  1. […] Hat Tip: Duncan’s Economic Blog. […]

  2. charliemarks said, on June 12, 2009 at 12:45 am

    “Government action has worked in stabilising the economy.”

    Yeah, but by the same token the actions of successive govts in deregulating the economy helped to destablise it. And govt action to cut public spending in one area will push it up in another – as the example of the unemployed nurse demonstrates.

    I don’t believe for a moment that the Tories or New Labour will end Britain’s involvement in the US occupation of Afghanistan because of the need to reduce public spending… the same goes for the costly privatisation policies in the health system…

    • duncanseconomicblog said, on June 12, 2009 at 8:13 am

      Charlie,

      I agree that we shouldn’t be too quick to celebrate this. Even if the economy is growing, we can’t simply return to business as usual.

      Personally I do support the involvement in Afghanistan. However I think it may now be unaffordable.


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