6 posts in this topic

Posted

It was a mistake in a spreadsheet that could have been easily overlooked: a few rows left out of an equation to average the values in a column.

The spreadsheet was used to draw the conclusion of an influential 2010 economics paper: that public debt of more than 90% of GDP slows down growth. This conclusion was later cited by the International Monetary Fund and the UK Treasury to justify programmes of austerity that have arguably led to riots, poverty and lost jobs.

Now the mistake in the spreadsheet has been uncovered

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Posted

If this is true and the original calculation the whole austerity policy is based on was wrong, Osborne HAS to look at things again.

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Posted

If this is true and the original calculation the whole austerity policy is based on was wrong, Osborne HAS to look at things again.

Unfortunately I don't think that's likely. There's a mountain of evidence to suggest that austerity is bad policy but this government refuses to consider any alternative. I think there are two possible reasons for this:

1) they don't have any other ideas

2) they are ideologically committed to reducing the size of the state and are using the recession as a means to an end regardless of the cost.

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Posted

^ There's definitely an ideological factor involved. The Tories have -always- supported small government, and I do too. The behemoth Labour always builds is fundamentally inefficient and far too expensive to run.

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Posted

^ There's definitely an ideological factor involved. The Tories have -always- supported small government, and I do too. The behemoth Labour always builds is fundamentally inefficient and far too expensive to run.

Well apparently it's less expensive to run than this small state disaster that the Tories are creating ;) Austerity has stifled all growth in the economy and borrowing is at an all time high. They've clearly demonstrated that they don't know how to run the economy as they've even failed to hit the targets they set for themselves and every one of their predictions has proved false. Their philosophy is well and truly bankrupt.

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Posted

For Reinhart and Rogoff, who have a huge reputation in the field

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