NYT - Pain of British Fiscal Cuts Could Inform U.S. Debate

[Scuba]

http://www.nytimes.com/2011/04/15/business/global/15iht-pound15.html?_r=1


So how are those "austerity measures" working overseas? A year into Britain’s controversial austerity plan, retail sales have had the sharpest monthly plunge in 15 years and real household income is expected to fall 2 percent this year.


<snip>

But in Britain, one year into its own controversial austerity program to plug a gaping fiscal hole, the future is now. And for the moment, the early returns are less than promising.

Retail sales plunged 3.5 percent in March, the sharpest monthly downturn in Britain in 15 years. And a new report by the Center for Economic and Business Research, an independent research group based here, forecasts that real household income will fall by 2 percent this year. That would make Britain’s income squeeze the worst for two consecutive years since the 1930s.

<ends nip>

[PATRICK]

1. From Empire

of production to a haven for imperial banks. Our own transformation is nearly as complete or conjoined hip and thigh. Small surprise here. Unfortunately France is currently in the grip of a conservative as is Germany and other big parties are in the hunt, in the game.

They(corporatized governments) seem all to be hunting for their own people to kill and impress each other with first blood and trophies.

Brave New World Order.

[hifiguy]

2. It seems to me that the French and German "conservatives"

are well to the left of the Democrats here. US Repiglicans would tar and feather the likes of Merkel and Sarkozy for being revolutionary Bolsheviks. And the German economy seems to be booming, with unemployment dropping steadily and rapidly.

[dkf]

3. The sad fact is that we depend on people spending everything they have and more to keep our

Economies going.

If people save then the economy doesn't work.

I've often wondered if this is why we don't make much of an effort to teach people how to manage their finances. Our economies need people to be reckless to consume enough to employ people.