We warned that the agenda of austerity and cuts would lead to a return to recession. Basic economic and common sense suggests that if you slash public spending and throw hundreds of thousands of people on the dole, this would lead to further economic problems, as well as the disastrous social problems it results in. This unfortunately is proving to be true.
We take no pleasure in being right on this, because the fact that the economy shrunk by 0.5% in the last quarter of 2010 is an indicator of lost jobs, lower wages, and declining public services and social welfare.
George Osborne is pathetically trying to blame the weather but this does not explain all of the economic decline. He will have to be a bit more creative in three months time if the economic figures in April are as dire as they are today. The cuts are not necessary, and they are destroying lives. Now we have proof they are destroying the economy as well.