Carts before Horses

Abstract

The Government has wade poiitical capital ol its hope that economic growth will complete the recovery ^riitiated by the reduction iri the rate of inflation, so that it can 'hold' public expenditure. But, argues economist Jofm Burton, the Government's expectations are over-optimistic. Forecasts of growth nearly always prove false. In any event, growth is unlikely to be anything like sufficient to sustain recovory v/ithout substantial cuts -not mere containment -in state spending and taxation. Corisoliaatioii' will not work.Dear Madam,