Monday, 14 December 2015

Slow and Steady Wins the Race - The Austerity Debate Mini-blog

As a child my mum read my brother and I the story of the tortoise and the hare. We all know the story, the fast hare was challenged to a race by the slow tortoise and yet despite the hares immense advantage his overconfidence is his downfall and he loses the race.

Everyone looks at Aesop's famous fable as allegory for working hard and not being too over confident - I look at it as the perfect way to explain why Austerity as a policy is working.

Austerity may not be the prettiest policy. Cutting spending rarely is. To quote Mrs T though pennies do not come from Heaven. When we spend more than we have they must come from somewhere here on Earth and it is both arrogant and overconfident to believe that we will always be able to afford to find them.

Moreover we have enjoyed a period of near constant growth since 2010. In fact the only dip we have seen coincided with a similar dip in the German economy (well known for it's fiscal prudence) and the rest of Europe and Central Asia. Since then we have since seen consistently higher growth then our European cousins. In fact we have seen almost double the annual GDP growth of the European Average. This is despite claims that the Government is cutting spending "too far and too fast"

At the same time the UK Government has been accused of being too slow at building the economy. People have complained that growth has been the slowest since records began. But this takes me straight back to Aesop's fable:


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