Tuesday, 23 February 2010

60 Economists back Darling Recovery Plan

Labour economic plan were given a boost last Friday as more than 60 top encomiasts back Alistair Darling’s plans to sustain the UK’s fragile recovery. The expects including two Nobel prize winners backed Mr Darling decision not to start cutting spending until 2011.

In two letters to the Financial Times, they said Tory plans to reckless early cuts could damage recovery from the recession. In one, the economists said Conservative plans for “short, sharp shock” would be positively dangerous. It said:”if next year the government spent less and saved more than it currently plans this wouldn’t make a sustainable recovery more likely .Those signing them included Nobel laureates Robert Solow and Joseph Stiglitz and five former member of the Bank of England’s interest rate setting committee. It is a response to letter to the Sunday Times by just 20 economists backing immediate Tory spending cuts. One letter by Lord Skidelsky said: “Tory plans would “risk the economics recovery”. He said:”What the Sunday Times economists failed explain is how a cut in the deficit will lead to a revival in private spending when the economy is as depressed as it is today. We risk jeopardising the not very green shoots of recovery.What particularly sticks in my gullet is should always do what financial markets want us to the current pickle. The well being of our people not necessarily the same as the being of bond traders.

The TUC Brendan Barber said:”these letters firmly reject the call for early cuts. The UK deficit is the result of vital Government action to keep the economy afloat .Premature cuts will send the UK into a double dip recession.

Labour economic plan were given a boost last Friday as more than 60 top encomiasts back Alistair Darling’s plans to sustain the UK’s fragile recovery. The expects including two Nobel prize winners backed Mr Darling decision not to start cutting spending until 2011.

In two letters to the Financial Times, they said Tory plans to reckless early cuts could damage recovery from the recession. In one, the economists said Conservative plans for “short, sharp shock” would be positively dangerous. It said:”if next year the government spent less and saved more than it currently plans this wouldn’t make a sustainable recovery more likely .Those signing them included Nobel laureates Robert Solow and Joseph Stiglitz and five former member of the Bank of England’s interest rate setting committee. It is a response to letter to the Sunday Times by just 20 economists backing immediate Tory spending cuts. One letter by Lord Skidelsky said: “Tory plans would “risk the economics recovery”. He said:”What the Sunday Times economists failed explain is how a cut in the deficit will lead to a revival in private spending when the economy is as depressed as it is today. We risk jeopardising the not very green shoots of recovery.What particularly sticks in my gullet is should always do what financial markets want us to the current pickle. The well being of our people not necessarily the same as the being of bond traders.

The TUC Brendan Barber said:”these letters firmly reject the call for early cuts. The UK deficit is the result of vital Government action to keep the economy afloat .Premature cuts will send the UK into a double dip recession.