British Prime Minister Proposes Plan to Slow Growth, Raise Unemployment
The NYT reported on a speech by UK Prime Minister David Cameron in which he insisted on the need for large budget cuts and/or tax increases. The article included no assessment of this agenda from economists. Many prominent economists, such as Nobel Laureates Paul Krugman and Joe Stiglitz, have argued that deficit reduction in the near future will lead to higher unemployment and slower growth. Unlike the vast majority of proponents of fiscal austerity, these economists were able to see the $8 trillion housing bubble that wrecked the U.S. economy.