Monday, January 04, 2010

Starting the Year

First off a little statistic from the FT relating to the deficit and the FT's survey of economists:
Asked to name the three biggest risks to the economy, 37 of the 79 economists polled said the UK was threatened by a fiscal crisis that could derail any revival.
As far as I can tell this means that 42 of the FT's 79 did not list the fiscal deficit as one of their three biggest risks. This stikes me as signifigant because it means that 42 of their 79 economists thought their were three risks to the economy more signifigant than the deficit.

This is important because we have a political climate that is forming a consensus that suggests that cuts should are an absolutely and completely obvious priority and OMG HOW CAN TEH GORD NOT SEE ITZ!!!?!

So, let me stress for the new year: there is no real consensus around the need to make cuts.

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