Welcome to my Blog

I am a semi-retired former Scottish trade union policy wonk, now working on a range of projects. This includes the Director of the Jimmy Reid Foundation. All views are my own, not any of the organisations I work with. You can also follow me on Twitter. Or on Threads @davewatson1683. I hope you find this blog interesting and I would welcome your comments.

Thursday, 21 October 2010

Stiglitz on defict reduction

In light of the CSR I would recommend reading Joseph Stiglitz's comment piece in the Guardian earler this week. Probably the most credible economist in the world saying that the UK economy needs a stimulus, not the deficit reduction slash and burn we got yesterday.

The concluding para of this piece says it all:

"Britain is embarking on a highly risky experiment. More likely than not, it will add one more data point to the well- established result that austerity in the midst of a downturn lowers GDP and increases unemployment, and excessive austerity can have long-lasting effects. If Britain were wealthier, or if the prospects of success were greater, it might be a risk worth taking. But it is a gamble with almost no potential upside. Austerity is a gamble which Britain can ill afford."

The Nobel prize winning economist has agreed to join the Scottish Government's Council of Economic Advisors. He is a massive improvement on the current Chair of that group Sir George Mathewson, arguably one of the authors of the banking collapse, and certainly a man with little credibility left.

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