Wednesday, 22 September 2010

Business leaders say government cuts threaten recovery

Criticism of the government's economic policy is finding support in some unexpected corners. The Confederation of British Industry (CBI) warn today that recovery is jeopardised by a lack of investment in “those areas which most galvanise growth, namely infrastructure and capital investment." Their comments echo those made earlier in the week by the Director General of the International Monetary Fund (IMF). These are both traditionally very right-wing institutions, strong advocates of neo-liberalism and pure, unfettered free markets. Y'know, like the ones responsible for the current mess. Their comments reflect growing concerns in elite policy circles about the impact of rolling back state spending in the middle of a recession. For one good example of the case for an alternative economic policy, based on investment not cuts, click here.