Not quite what David Cameron promised the British public. Via the Guardian:
Britain’s economy shrank by 0.6% in the final quarter of last year, a sharper fall than previously thought.
The surprise downward revision, from a 0.5% drop reported last month, was blamed on industry and service sector firms whose performance was worse than originally estimated. Consumer spending also slipped and the economy was kept afloat by higher government spending, which will see sharp cuts in coming months.
It is now clear that austerity measures are negatively impacting the British economy, but it is still highly unlikely that the government will implement a Keynesian program of spending to reverse the effects. It is after all, an ideologically driven government wedded to the idea that private enterprise provides all solutions – even when the evidence proves the complete opposite.
Ben Cohen is the editor and founder of The Daily Banter. He lives in Washington DC where he does podcasts, teaches Martial Arts, and tries to be a good father. He would be extremely disturbed if you took him too seriously.