Will politicians cause a Roosevelt Recession in 2013?

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Recent eco­nom­ic data from both the UK and US should have tak­en the wind out of the sails of those in the Anglos­phere who – despite clear­ly con­tra­dic­to­ry evi­dence from main­land Europe – con­tin­ue to argue that fis­cal tight­en­ing is need­ed for eco­nom­ic growth is to recov­er.

The UK, which has fol­lowed a fis­cal aus­ter­i­ty path right from the elec­tion of the Con­ser­v­a­tive-Lib­er­al coali­tion gov­ern­ment in mid-2010, record­ed a 0.3 per cent fall in the last quar­ter of 2012, while the US record­ed a 0.1 per cent fall (main­ly on the back of declin­ing gov­ern­ment expen­di­ture). Get­ting the gov­ern­ment sec­tor out of the way and let­ting the pri­vate sec­tor rip clear­ly isn’t going accord­ing to script, even when you can’t blame Brus­sels for the pol­i­cy.

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About Steve Keen

I am Professor of Economics and Head of Economics, History and Politics at Kingston University London, and a long time critic of conventional economic thought. As well as attacking mainstream thought in Debunking Economics, I am also developing an alternative dynamic approach to economic modelling. The key issue I am tackling here is the prospect for a debt-deflation on the back of the enormous private debts accumulated globally, and our very low rate of inflation.