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Press Release

Press Releases

IEA: Unemployment figures show fiscal stimulus unnecessary

IEA press release

Commenting on the latest unemployment figures, Prof. Philip Booth, Editorial Director at the Institute of Economic Affairs, said:

“The latest unemployment figures clearly demonstrate that the UK has a growth and productivity problem and not a jobs problem. The economy has shown an ability to destroy and create jobs at an astonishing rate as it has responded to the cutbacks in public sector employment and in retailing. This is good news. It clearly shows that a fiscal stimulus package is not needed and indeed, would be undesirable.

“However, our growth and productivity problem is serious. Such problems cannot be solved by more government spending and borrowing. Indeed, in order to see the economy growing again, we must cut government spending from its current extremely high levels, reduce taxation and deregulate the economy. Unfortunately, in many key areas, the government is moving in precisely the opposite direction.”

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