Sunday, 25 October 2015

The Guardian: Austerity was a political choice. Now it’s starting to look like a bad one

The Guardian: Austerity was a political choice. Now it’s starting to look like a bad one

Article by Heather Stewart

'And that’s why even rightwing thinktanks the Adam Smith Institute and the Institute for Economic Affairs, hardly the skivers’ friends, criticised the policy last week: it will undermine work incentives. Sam Bowman of the ASI said: “The government has long claimed to want to make work pay for everyone, but cutting tax credits would disincentivise work and hurt those at the bottom of society.”

Tax credits cuts may yet be the policy that sees Osborne’s carefully constructed political edifice start to crumble. He chose austerity over investment, cutting back the state over taxing the rich, rewarding the comfortable over protecting the needy. And as Heidi Allen’s powerful maiden speech showed last week, those “judgment calls” may finally have caught up with him, by leading to policies even his own backbenchers are struggling to defend.'

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