Krugman Says U.K. Austerity Push Is ‘Deeply Destructive’

May 30 (Bloomberg) -- Nobel laureate Paul Krugman said the U.K. government should drop its commitment to fiscal cutbacks and boost spending to avert an extended downturn in the economy. (Source: Bloomberg)

Nobel laureate Paul Krugman said the U.K. government’s austerity plan is “deeply destructive” and it should instead step up spending to boost the economy.

The push for austerity “is failing dismally here,” he said in an interview on the BBC Radio 4’s Today program today. “The whole intellectual framework has been tested to destruction,” he said “and yet the government is insisting that it will not revise” its austerity plan.

“Britain should be spending a couple of percent of GDP more,” Krugman said. “By all means have a plan for cutting the deficit, for reining in long-run spending, but not now.”

To contact the reporter on this story: Svenja O’Donnell in London at sodonnell@bloomberg.net

To contact the editor responsible for this story: Andrew Atkinson at a.atkinson@bloomberg.net

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