I was at the march - thousands of people protesting peacefully against the cuts. Critics say there is no alternative to the cuts. The Organisation for Economic Co-operation and Development published a report last week.
www.oecd.org/document/38/0,3746,en_2649_34569_47283558_1_1_1_1,00.htmlthe OECD report. The summary says:
"The government is pursuing a necessary and wide ranging programme of fiscal consolidation and structural reforms."
Every party, not just the government, knows we have to take necessary steps to reduce the deficit. It's the nature of those steps that is causing concern. Yes, the steps are wide-ranging - OECD is stating the obvious, not necessarily giving approval to these wide-ranging steps.
Page 2 of the summary says: "A broad based recovery started in end-2009" (I thought the Labour party were in power then) but the UK "faces significant headwinds during 2011, which can be mitigated by monetary policy remaining supportive" (Question: is the monetary policy being pursued by the government supportive or not?).
Page 2 also says, "Monetary policy should hence remain expansionary...to support the recovery".
Now, I'm not an economist, but I thought an expansionary fiscal policy meant increasing public expenditure. The report also said that the government must tackle "banks that are too big to fail".
Many countries have been in this problem before but none has tried to reduce their deficits by relying so much on cutting public expenditure. The government's policy is a risky experiment - and one that no other government has pursued after a deep recession.
fullfact.org/sites/fullfact.org/files/Full_Fact_The_Economy-The_Big_Question.pdf