As expected, a key election issue concerns how much to cut government expenditure in 2010-11. The main opposition party now proposes to cut an extra £6 billion in 2010-11, on top of the measures already planned by the Government. This cut is described as efficiency savings. But in economic gobbledook it is just a cut by another name, ie efficiency savings or anything else. It is all about supply and demand. The supply of economists is elastic but the demand for them very inelastic and we are worried about being sacked when belts are tightened, so this will lead directly to job losses and indirectly to further falls in spending by us at Waitrose. Or the Co-op. At a time when recovery is delicate, it could leave us on Job Seekers Allowance, which even folk as out of touch with reality as we are know is not enough to get by on. And most of us are past our best — with much larger job consequences.
This is not the time for such a destabilising action. The recovery is still fragile. We have not yet stuffed enough away to want to be on the scrap heap. Firms and households are saving more to rebuild their balance sheets. This means that firms are investing less and employing fewer fuckwit economists. Only when the recovery is well underway, will it be safe to have extra cuts in government expenditure.
The first step is to make sure that growth returns, and economists jobs are safe. Rash action now could imperil not only our jobs but also the prospects for Gordon Brown.
Emeritus Professor of Economics, LSE; founder of the LSE Centre for Economic Self-Congratulation
Emeritus Professor of Political Economy, Polytechnic University of Coventry, nearly Warwick
Gary Elsby, Emeritus Professor of Politcal Stupidity, Polytechnic of Stoke on Trent
Reader in Economic Policy, University of Oxford; former member of the MP; pinko-crypto-commie
Professor of Economics, University of Cambridge;
Jean Monnet Professor for European Economic Policy, University of Trier, Germany( so what's it got to do with me?)
Professor of Economics at Heriot-watt University(not a proper one)
Bruce V. Rauner Professor of Economics, Dartmouth College, USA, former member of the MPC and well known marxist lunatic
Montague Burton Professor of Industrial Relations, University of Cambridge- imagine that, a Professor of Industrial Relations, my mother is SO proud.
Professor of Economics, University College, London and token girlie.
None have ever run a business.
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