For Publishers
DiscoveryMetadataPeer reviewHostingPublishing
For Researchers
JoinPublishReviewCollect
Register
Blog
About
Search
Advanced search
My ScienceOpen
Search
For Publishers
For Researchers
Blog
About
950
views
0
references
 Top references
cited by
2
    
0 reviews
 Review
0
comments
 Comment
0
recommends
+1 Recommend
1 collections
    0
    shares
      388
      similar
       All similar

      If you have found this article useful and you think it is important that researchers across the world have access, please consider donating, to ensure that this valuable collection remains Open Access.

      The World Review of Political Economy is published by Pluto Journals, an Open Access publisher. This means that everyone has free and unlimited access to the full-text of all articles from our international collection of social science journals. Furthermore Pluto Journals authors don’t pay article processing charges (APCs).

       

       

      scite_

      World Review of Political Economy

      Volume 10, Issue 1
       
      • Record: found
      • Abstract: found
      • Article: found
      Is Open Access

      Government Debts and Fiscal Deficits in the United Kingdom: A Critical Review

      research-article
      Author(s):
      Publication date (Print):
      Journal: World Review of Political Economy
      Publisher: Pluto Journals
      Keywords: government debts, public deficits, austerity, fiscal policy, neoliberalism
      Bookmark

            Abstract

            This article intends to examine the issues of public debt and austerity policy in the United Kingdom. It attempts to provide an evaluation of fiscal policy under neoliberalism and to consider the relationship between this policy and the macroeconomic performance of the United Kingdom economy. There also seem to be ambiguities among the policy makers about austerity. Therefore, it seems important to examine the issue of government-imposed austerity policies and fiscal deficits. There is a need to borrow to cover the deficits as there is no inflationary pressure in the United Kingdom. Most democratic solutions against any inflationary pressures are to reduce the money in circulation through higher taxes. This study concludes that increased state intervention, as a means to enhance long-term growth, is crucial for achieving economic stability and greater equality.

            Content

            Author and article information

            Journal
            Journal ID (doi): 10.2307/j50005553
            Journal ID (jcode): worlrevipoliecon
            Title: World Review of Political Economy
            Publisher: Pluto Journals
            ISSN: 2042-891X
            ISSN: 2042-8928
            Publication date (Print): 1 April 2019
            Volume: 10
            Issue: 1 ( doiID: 10.13169/worlrevipoliecon.10.issue-1 )
            Pages: 40-68
            Article
            Publisher ID: worlrevipoliecon.10.1.0040
            DOI: 10.13169/worlrevipoliecon.10.1.0040
            SO-VID: 0ac81721-fb53-42d4-8863-b61298f3cb6b
            Copyright © © 2019 World Association for Political Economy
            License:

            All content is freely available without charge to users or their institutions. Users are allowed to read, download, copy, distribute, print, search, or link to the full texts of the articles in this journal without asking prior permission of the publisher or the author. Articles published in the journal are distributed under a http://creativecommons.org/licenses/by/4.0/.

            History
            Custom metadata
            lang eng

            ScienceOpen disciplines: Political economics
            Keywords: public deficits,government debts,neoliberalism,fiscal policy,austerity

            References

            1. Alesina, A., and S. Ardagna. 2010. “Large Changes in Fiscal Policy: Taxes versus Spending.” In NBER Book: Tax Policy and the Economy, edited by J. R. Brown, vol. 24, 35-68. Chicago: University of Chicago Press.

            2. Blanchflower, D. 2016. “We've Cut Interest Rates, But What Happens Next?” The Guardian, August 9. Accessed October 7, 2018. https://www.theguardian.com/commentisfree/2016/aug/09/cut-interest-rates-gdp-stimulus-brexit-vote.

            3. Blyth, M. 2013. Austerity: The History of a Dangerous Idea. New York: Oxford University Press.

            4. Boyer, R. 2012. “The Four Fallacies of the Contemporary Austerity Policies: The Lost Keynesian Legacy.” Cambridge Journal of Economics 36 (1): 283-312.

            5. Callinicos, A. 2012. “Contradictions of Austerity.” Cambridge Journal of Economics 36 (1): 65-77.

            6. Callinicos, A. 2017. “Britain and Europe on the Geopolitical Roller-Coaster.” Competition and Change 21 (3): 185-198.

            7. Cassidy, J. 2013. “The Reinhart and Rogoff Controversy: A Summing Up.” The New Yorker, April 26. Accessed November 4, 2017. https://www.newyorker.com/news/john-cassidy/the-reinhart-and-rogoff-controversy-a-summing-up.

            8. Chakrabortty, A. 2018. “Britain Fell for a Neoliberal Con Trick.” The Guardian, October 17. Accessed October 17, 2018. https://www.theguardian.com/commentisfree/2018/oct/17/economic-lies-neoliberalism-taxpayers.

            9. Chang, H. 2016. “Making Things Matters. This Is What Britain Forgot.” The Guardian, May 18. Accessed October 17, 2018. https://www.theguardian.com/commentisfree/2016/may/18/making-things-matter-britain-forgot-manufacturing-brexit.

            10. Chang, H. 2017. “The Myths about Money that British Voters Should Reject.” The Guardian, June 1. Accessed October 17, 2018. https://www.theguardian.com/commentisfree/2017/jun/01/myths-money-british-voters-economy-britain-welfare.

            11. Chang, W. W. 2018. “Brexit and Its Economic Consequences.” The World Economy 41 (9): 2349-2371.

            12. Chick, V., and D. Dow. 2013. “Keynes, the Long Run, and the Present Crisis.” International Journal of Political Economy 42 (1): 13-25.

            13. Chick, V., and A. Pettifor. 2011. “The Economic Consequences of Mr. Osborne: Fiscal Consolidation: Lessons from a Century of UK Macroeconomic Statistics.” PRIME (Policy Research in Macroeconomics). Accessed October 17, 2018. https://www.annpettifor.com/wp-content/uploads/2010/06/Fiscal-Consolidation1.pdf.

            14. Crotty, J. 2012. “The Great Austerity War: What Caused the U.S. Deficit Crisis and Who Should Pay to Fix It?” Cambridge Journal of Economics 36 (1): 79-104.

            15. Davies, W. 2016. “The New Neoliberalism.” New Left Review 101 (Sep.-Oct.): 121-134.

            16. Dumenil, G., and D. Levy. 2011. The Crisis of Neoliberalism. Cambridge, MA: Harvard University Press.

            17. Dunn, B. 2014. “Making Sense of Austerity: The Rationality in an Irrational System.” The Economic and Labour Relations Review 25 (3): 417-434.

            18. Elliott, L., and P. Inman. 2017. “Gloomy Brexit Forecasts for UK Are Coming True.” The Guardian, December 20. Accessed October 17, 2018. https://www.theguardian.com/business/2017/dec/20/imf-christine-lagarde-brexit-forecasts-growth-uk-economy.

            19. Fine, B., and A. Saad-Filho. 2017. “Thirteen Things You Need to Know about Neoliberalism.” Critical Sociology 43 (4-5): 685-706.

            20. Fontana, G., and M. Sawyer. 2012. “Setting the Wrong Guidelines for Fiscal Policy: The Post-2007 UK Experience.” International Journal of Political Economy 41 (2): 27-41.

            21. Girdner, E. J., and K. Siddiqui. 2008. “Neoliberal Globalization, Poverty Creation and Environmental Degradation in Developing Countries.” International Journal of Environment and Development 5 (1): 1-27.

            22. Glyn, A. 2006. Capitalism Unleashed: Finance, Globalization, and Welfare. Oxford: Oxford University Press.

            23. Harvey, D. 2005. A Brief History of Neoliberalism. Oxford: Oxford University Press.

            24. Hayek, F. 1960. The Constitution of Liberty. London: Routledge and Kegan Paul.

            25. Hein, E., and M. Mundt. 2012. “Financialisation and the Requirements and Potentials for Wage-Led Recovery: A Review Focussing on the G20.” ILO Working papers, Conditions for Work and Employment Series No. 37, International Labour Organization, Geneva, Switzerland.

            26. Her Majesty's Treasury. 2008. Stability and Opportunity, HC 388. London: The Stationery Office.

            27. Herndon, T., M. Ash, and R. Pollin. 2014. “Does High Public Debt Consistently Stifle Economic Growth? A Critique of Reinhart and Rogoff.” Cambridge Journal of Economics 38 (2): 257-279.

            28. International Monetary Fund. 2012. “World Economic Outlook: The Good, the Bad, and the Ugly.” In Coping with High Debt and Sluggish Growth, 110-111. Washington, DC: International Monetary Fund. Accessed October 17, 2018. https://www.imf.org/en/Publications/WEO/Issues/2016/12/31/Coping-with-High-Debt-and-Sluggish-Growth.

            29. International Monetary Fund. 2016. “Fiscal Monitor: Debt: Use It Wisely.” In World Economic and Financial Survey. Washington, DC: International Monetary Fund. Accessed October 17, 2018. http://www.imf.org/external/pubs/ft/fm/2016/02/pdf/fm1602.pdf.

            30. Kalecki, M. 1944. The Economics of Full Employment. Oxford: Blackwell.

            31. Kalecki, M. 1971. Selected Essays on the Dynamics of the Capitalist Economy. Cambridge: Cambridge University Press.

            32. Keynes, J. M. 1936. The General Theory of Employment, Interest and Money. New York: Harcourt, Brace.

            33. Konzelmann, S. J. 2014. “The Political Economics of Austerity.” Cambridge Journal of Economics 38 (4): 701-741.

            34. Krugman, P. 2012. “Nobody Understands Debt.” The New York Times, January 1. Accessed October 17, 2018. https://www.nytimes.com/2012/01/02/opinion/krugman-nobody-understands-debt.html.

            35. Lapavitsas, C. 2008. “Financialized Capitalism: Direct Exploitation and Periodic Bubbles.” Accessed June 6, 2015. http://www.leftlibrary.com/lapa1.pdf.

            36. Lawson, T. 2015. Essays on the Nature and State of Modern Economics. London: Routledge.

            37. Lerner, A. P. 1972. “The Economics and Politics of Consumer Sovereignty.” The American Economic Review 62 (2): 258-266.

            38. Mason, P. 2010. Meltdown: The End of the Age of Greed. London: Verso.

            39. Mason, P. 2016. “Are We Living through Another 1930s?” The Guardian, August 1. Accessed October 7, 2018. https://www.theguardian.com/commentisfree/2016/aug/01/are-we-living-through-another-1930s-paul-mason.

            40. McCausland, W. D., and I. Theodossiou. 2016. “The Consequences of Fiscal Stimulus on Public Debt: A Historical Perspective.” Cambridge Journal of Economics 40 (4): 1103-1116.

            41. Monbiot, G. 2016. “Neoliberalism: The Deep Story That Lies beneath Donald Trump's Triumph.” The Guardian, November 14. Accessed October 7, 2018. https://www.theguardian.com/commentisfree/2016/nov/14/neoliberalsim-donald-trump-george-monbiot.

            42. Morgan, J. 2009. “The Limits of Central Bank Policy: Economic Crisis and the Challenge of Effective Solutions.” Cambridge Journal of Economics 33 (4): 581-608.

            43. Nicholson, J. S. 1920. “Adam Smith on Public Debts.” The Economic Journal 30 (117): 1-12.

            44. Obolenskaya, P. 2018. “Social Policy in a Cold Climate: Spending, Policies and Outcomes since the Economic Crisis in the UK.” Centre for Analysis of Social Exclusion, The London School of Economics and Political Science. Accessed October 5, 2018. http://eprints.lse.ac.uk/id/eprint/86447.

            45. Organisation for Economic Co-operation and Development. 2016. “FDI In Figures.” Accessed November 5, 2016. http://www.oecd.org/corporate/FDI-in-Figures-April-2016.pdf.

            46. Osborne, G. 2015. “Mansion House 2015: Speech by the Chancellor of the Exchequer.” Accessed October 5, 2018. https://www.gov.uk/government/speeches/mansion-house-2015-speech-by-the-chancellor-of-the-exchequer.

            47. Reinhart, C., and K. Rogoff. 2010. “Growth in a Time of Debt.” The American Economic Review 100 (2): 573-578.

            48. Ricardo, D. (1817) 2002. On the Principles of Political Economy and Taxation. London: Empiricus Books.

            49. Robinson, J. 1972. “The Second Crisis of Economic Theory.” The American Economic Review 62 (2): 1-10.

            50. Saad-Filho, A., and D. Johnston, eds. 2004. Neoliberalism: A Critical Reader. London: Pluto Press.

            51. Sablowski, T. 2008. “Towards the Americanisation of European Finance? The Case of Finance-Led Accumulation in Germany.” In American Empire and the Political Economy of Global Finance, edited by L. Panitch and M. Konings, 135-158. London: Palgrave Macmillan.

            52. Sawyer, M. 2001. “Kalecki on Imperfect Competition, Inflation and Money.” Cambridge Journal of Economics 25 (2): 245-261.

            53. Sawyer, M. 2011. “UK Fiscal Policy after the Global Financial Crisis.” Contributions to Political Economy 30 (1): 13-29.

            54. Sawyer, M. 2012. “The Tragedy of UK Fiscal Policy in the Aftermath of the Financial Crisis.” Cambridge Journal of Economics 36 (1): 205-221.

            55. Seccareccia, M. 2012. “Fiscal Policy at the Crossroads: An International Perspective.” International Journal of Political Economy 41 (2): 3-4.

            56. Siddiqui, K. 2012. “Developing Countries' Experience with Neoliberalism and Globalisation.” Research in Applied Economics 4 (4): 12-37.

            57. Siddiqui, K. 2015a. “Economic Policy Issues.” Equilibrium Quarterly Journal of Economics and Economic Policy 10 (1): 9-32.

            58. Siddiqui, K. 2015b. “Political Economy of Japan's Decades Long Economic Stagnation.” Equilibrium Quarterly Journal of Economics and Economic Policy 10 (4): 9-39.

            59. Siddiqui, K. 2018. “Capitalism, Globalisation and Inequality.” The World Financial Review, December 3. Accessed October 17, 2018. http://www.worldfinancialreview.com/?p=36382.

            60. Siddiqui, K., and P. Armstrong. 2018. “Capital Control Reconsidered: Financialisation and Economic Policy.” International Review of Applied Economics 32 (6): 713-731.

            61. Skidelsky, R. 2016. “How Worried Should We Be about National Debt?” The Guardian, August 25. Accessed October 5, 2018. https://www.theguardian.com/business/2016/aug/25/how-worried-should-we-be-about-national-debt-uk-us-fiscal-austerity.

            62. Stiglitz, J. 2017. “Austerity Has Strangled Britain.” The Guardian, June 7. Accessed November 5, 2016. https://www.theguardian.com/commentisfree/2017/jun/07/austerity-britain-labour-neoliberalism-reagan-thatcher.

            63. Stockhammer, E. 2015. “Rising Inequality as a Cause of the Present Crisis.” Cambridge Journal of Economics 39 (3): 935-958.

            64. Tcherneva, P. R. 2012. “The Role of Fiscal Policy: Lessons from Stabilization Efforts in the United States during the Great Depression.” International Journal of Political Economy 41 (2): 5-26.

            65. Tooze, A. 2018. Crashed: How a Decade of Financial Crises Changed the World. London: Allen Lane.

            66. Venugopal, R. 2015. “Neoliberalism as a Concept.” Economy and Society 44 (2): 165-187.

            67. Wade, R. 2009. “The Global Slump: Deeper Causes and Harder Lessons.” Challenge 52 (5): 5-24.

            68. Wolf, M. 2011. “Thinking through the Unthinkable: Fundamental Difficulty Has Been the Failure to Understand the Crisis.” Financial Times, November 9. Accessed November 5, 2016. https://www.ft.com/content/1299d48c-0a01-11e1-85ca-00144feabdc0.

            69. Wolf, M. 2018. “What Really Went Wrong in the 2008 Financial Crisis.” Financial Times, July 17. Accessed November 5, 2016. https://www.ft.com/content/e5ea9f2a-8528-11e8-a29d-73e3d454535d.

            Comments

            Comment on this article