Friday, 25 February 2011

Is This Really An Economy Pulled Back From The Brink?

The UK's GDP figures for the final quarter of 2010 which showed the economy shrank by 0.5% during that period, have been revised down even further to 0.6%.

Of course this is a very small change, but it still shows that, far from the economy being 'pulled back from the brink' as the Prime Minister and Chancellor have insisted, the UK's finances are still on very shaky ground.

And it adds support to the argument that massive cuts in public spending and at the speed the Coalition have proposed, could damage the economy even further and make a double-dip recession more likely.

The argument that cuts are necessary because as the Chief Secretary to the Treasury put it, Labour 'maxed out the nation's credit card' are wearing increasingly thin in the eyes of the public. 

Watching this week's Question Time, the Welsh Secretary Cheryl Gillan, was met with loud boos from the audience when she once again trotted out this same line that has been used by the Coalition again and again from the moment they took office last May. 

The public are beginning to think the government is sounding like a broken record.

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