Government spending designed to help Britain through the coronavirus crisis will push the budget deficit to more than £200bn this year, according to forecasters, and debt is set to surpass 100 per cent of GDP. This surge is already prompting demands for austerity, which proved so destructive for British society in the decade to 2020.
In an article published on the New Statesman today, 12 leading economists lay out exactly why a return to austerity would be such a bad idea. The economists, including Mariana Mazzucato, Robert Skidelsky, Ann Pettifor, David Blanchflower and others, present an alternative case for growth and investment, progressive tax rises and Bank of England money creation. Whether Prime Minister Boris Johnson heeds their calls will show us how much the Conservative part has really changed.