George Osborne should recognise that his deficit-reduction programme is failing and change economic policy to avoid a triple-dip recession, a senior investment banker has warned.
Jim O'Neill, the chairman of Goldman Sachs Asset Management, said the chancellor's continued pursuit of austerity despite signs that the economy was stagnating, including worse-than-expected GDP figures, risked a lost decade for the British economy with low growth and increasing public debt.
Figures unveiled on Friday showed that the British economy shrank in the last quarter of 2012. If the economy shrinks again in the first quarter of 2012, Britain will be in recession for the third time since the economic crash of 2008.
Sunday, January 27, 2013
Admitting he's wrong? Never!
Austerity breeds contempt (and, of course, more austerity):