Ruth Porter discussed why we are still in recession with the economist Sean Rickard on BBC Three Counties radio.
She questioned the extent of austerity. The government has said it would get rid of the deficit but national debt has increased by £600 billion over this parliament. We have only seen 6% of the spending cuts announced being implemented and it is thus a myth that we have seen real austerity. The government have tackled the deficit by front-loading tax inceases which have made it very difficult for the private sector to grow.They should have implemented major cuts in public spending to allow them to fund tax cuts which would boost private sector investment.
The approach of the government in saying we need to get rid of the deficit is right, but they haven't gone far enough in cutting back public spending and deregulating to allow the private sector to invest.
Listen here. Segment starts at 1:06.25.
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