The record summer temperatures are clearly taking their toll of Britain’s economists.
In 1963 Nat King Cole suggested that we should
Roll out those lazy, hazy crazy days of summer
Those days of soda, pretzels and beer
Rolls out those lazy, hazy crazy days of summer
Dust off the sun and moon and sing a song of cheer.
Clearly the sun is affecting our financial experts although it does not really matter because most of Parliament are resting on their sun-drenched foreign beaches.
However back in the United Kingdom it is all going mad. Twenty prominent economists, who on 14 February 2010, wrote to the ‘Sunday Times’ supporting the Chancellor’s deficit reduction strategy. Mr. Osborne said that their letter was “a really significant moment in the economic debate.”
In this last week only one of the economists was willing to repeat his stance and nine urged the Chancellor to promote growth through tax cuts. Several were on holiday and unable to comment.
Britain is borrowing at its lowest rates for 300 years.
But the conundrums do not stop here. Some economists are now saying that it’s not as bad as we think and that the GDP figures will be revised upwards. I thought that the Coalition had determined to do away with this confusion by having independents forecasters. Apparently not.
The Treasury, who are supposed to know about these things, have been warning others that tax revenues are so poor that there will be a new round of cuts. The real impact is expected to fall on welfare.
This opinion is shared by independent experts who belief the coming publication of growth figures will cause the alarm bells to ring even louder.
Nat King Cole also sang that
You’d wish summer could always be here
That certainly applies to the Prime Minister and the Chancellor.