This past week, both the Prime Minister and the Chancellor have taken to the airwaves to boast that the coalition government’s ‘tough but necessary’ action in tackling the deficit has pulled it out of the danger-zone in which it lay when they took office, at the mercy of the bond and currency markets who would not tolerate such levels of government borrowing any longer. On the Today programme on Monday, George Osborne claimed that as a result, Britain would be spared the fate of Greece and Ireland.

That comparison with Ireland followed the increasingly desperate news that the former Celtic Tiger is sinking further and further into the quicksand of a deflationary spiral; the more the Tiger lashes out, the further it sinks: further cuts in public spending will be undertaken in order to chase the tail of a deficit that is running out of control precisely because cutting government expenditure during a recession creates a ‘death spiral’, as the economist David Blanchflower calls it, in which the cuts put people out of work, which lowers aggregate demand, which lowers growth, which lowers tax revenues, which widens the deficit, which results in more cuts and so on. Ireland is clearly in that death spiral right now, so it is not surprising that the Chancellor tried to contrast its fate with that of the UK.

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