Bella Caledonia, February 2021
It’s amazing how quickly history repeats itself in the realm of economics. In the immediate aftermath of the 2008 financial crisis, in both London and Washington, there was a clear political consensus in favour of stimulus policies aimed at rescuing the global economy from collapse. But that consensus disintegrated quickly.
After a period of sustained stimulus spending under Gordon Brown, Britain embraced austerity in 2010, with the election of the Cameron / Clegg coalition government. The US followed suit three years later, in 2013, when Barack Obama – whose initial fiscal response to the Great Recession was already weak – signed off on $1.2 trillion worth of cuts as part of a bipartisan budget deal with the Republicans.