In a damning indictment of Gordon Browns economic competence, a new report suggests that Britains current fiscal policies are more likely to lead to 1970s-style stagflation than cure the recession.
The author, Professor David B. Smith** of the University of Derby deploys a more accurate methodology*** than the government to estimate national income. The result is a far more realistic picture of the dire state of the public finances.
Using the 2009 Budget forecasts he calculates that next year the ratio of government expenditure to national income will rise to 53.4%, the highest ratio since World War II and 6.9% above the peak recorded in World War I.
The ratio of public expenditure to private