Or if you prefer more British precedents, it echoes the Snowden budget of 1931, which tried to restore confidence but ended up deepening the economic crisis.
Hmm, not all that sure of that: was it 1930 or 31?
Anyway, we do in fact know what reversed the economic decline in the UK in the early 1930s. Coming off the gold standard in 1931. Growth reappeared in 1932…..following that 25% reduction in the value of the £.
We might also remind ourselves what\’s happened to the value of the £ in the last couple of years….something like a 25% decline, isn\’t it?
So let\’s carry on with the comparison of today with the Great Depression, shall we?
Last time around we cut spending and devalued the pound. This brought growth some 5 years earlier than increasing spending did in the US.
This time around we\’re cutting spending and we\’ve already devalued the pound.
Everyone seems to be betting that what worked last time won\’t work this time. And I\’m really struggling to understand why?