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  • As we found out in 2011, by cutting spending we actually prolonged the recession by a few years, as compared to the US and other EU countries that didn't implement austerity.

    I don’t think the data bears this out. The UK had a deep initial contraction (due to our outsized reliance on the banking sector), but the rate of recovery equalled or exceeded European peers. Look at the UK vs France or (to a lesser extent) Germany on this chart.

  • Doesn't that chart show it took us six years to recover to the same extent as France and seven years to reach parity with Germany?

  • The point I was replying to was about speed of recovery (i.e. slope of line). UK grew faster than France from a deeper crash. Germany performed better in the immediate aftermath but growth slowed from 2012 (possibly due to the sovereign debt crisis) meaning both countries ended up in the same place.

    For me it's hard to conclude from that data that UK policy led to structurally lower growth (until Brexit of course).

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