Austerity programme proved to be ‘nonsense’ based on a spreadsheet mistake
The government’s principal justification for pursuing austerity lay in tatters today, after it was revealed that the economic theory behind it is based on a mistake.
The Chancellor’s entire austerity policy is based on a paper by economists Carmen Reinhart and Ken Rogoff, which is itself based on a spreadsheet concluding that public debt of more than 90 per cent of a country’s gross domestic product (GDP) slows down growth by 0.1 per cent – which is wrong.
It should have found that countries with such levels of debt see their economies grow by 2.2 per cent – but the false conclusion was used by the UK Treasury to justify the horrific austerity programme that has already caused terrible harm to many British citizens, and is expected to cause much worse harm in the future.
It means that the slaughter of innocents down at the DWP – the deaths of many…
View original post 482 more words