05 December 2012

Doing the Same Thing and Expecting Different Results

This is a quick reaction to today's Autumn statement. I have used data from three reports by the Office for Budget Responsibility, including the one released today. In June 2010 the OBR produced its first report on the fiscal outlook which was based on the plans bequeathed in Alistair Darling's last budget. It followed up with a report based on the new chancellor's budget. I have put on a chart the projections for government debt from these two reports. I have added the projection for debt contained in today's report.

Source: OBR; click to enlarge
Where the Darling plan saw debt peak at 75% of GDP, the latest projection has a peak just shy of 80%. The excuses for this predictable failure do not stand up. Yes, the eurozone has stagnated - but they are following the same wrong-headed austerity policies.

Time for Mr Osborne to go.

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