Despite all of the big talk about how austerity creates an economic miracle, as usual, miracle talk was nothing more than a lie by snake oil salesmen. The Tories, much like the US Republicans, are happy playing economic games with everyone else and the results are clear. Austerity during these conditions doesn't work, it only makes the recession more severe. If only the Democrats weren't so afraid of making this point early and often. Running a country is not the same as running a household, but this is somehow news for the GOP. During times like this, stimulus spending is a must to keep the economy going until the private sector can rebound. The Guardian:
"We consistently warned that their austerity plan was self-defeating and that cutting spending and raising taxes too far and too fast would badly backfire. David Cameron and George Osborne arrogantly and complacently dismissed people who warned of the risk of a double-dip recession and the country is now paying a very heavy price. Their economic credibility is now in tatters." Responding to news that a big fall in construction output and a smaller decline in manufacturing production had caused the economy to shrink for the fourth quarter in the last six, the prime minister told MPs: "These are very, very disappointing figures. I don't seek to excuse them, I don't seek to try and explain them away."