The fairy tale of British spending cuts
Critics blame David Cameron's spending cuts for causing another recession. What spending cuts?
Britain's Prime Minister David Cameron speaks during a news conference in the garden of number 10 Downing Street in London earlier this month. Karlsson argues that blaming the British double dip recession on spending cuts is a falsehood.
Dan Kitwood/Reuters/File
As we all know, Keynesians blame Britain's double dip recession on the Cameron governments allegedly savage austerity, and argues that the recession proves that he should reverse course. There's one big problem with that argument: those spending cuts are nowhere to be found. Below are central government spending in Britain for the first 7 months of 2012 and 2011. The number excluding interest is arguably the most interesting one since interest rates isn't something the governmment can directly decide upon. I'm asking you, do these numbers look like spending cuts to you?
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Central Government spending 2011 Jan-July: £356.35 billion
Central Government spending 2012 Jan-July: £368.91 billion +3.5%
Excluding interest 2011: £327.81 billion
Excluding interest 2012: £342.22 billion +4.4%
The Christian Science Monitor has assembled a diverse group of the best economy-related bloggers out there. Our guest bloggers are not employed or directed by the Monitor and the views expressed are the bloggers' own, as is responsibility for the content of their blogs. To contact us about a blogger, click here. This post originally ran on stefanmikarlsson.blogspot.com.
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