Deficit Reduction and Quantitative Easing

quantitative easing: Remember how the deficit had to be removed immediately? Living beyond ones means was wrong, and failure to act would mean lumbering the next generation with massive debt? The country fell for it. Reducing the deficit was neither as essential nor as urgent as they claimed, especially as quantitative easing would soon re-capitalise the banks and kick-start the economy, according to The Independent. In 2010, Osborne predicted the effect of the cuts would be to reduce the deficit to 40bn by the end of this year, but it is likely to be near 100bn. So much for Tory expertise. What about their point of it not being fair to lumber future generations with debt? Strange how this didnt figure at all when they tripled the fees university students would have to pay and The Tories propaganda machine did an excellent job in 2010, when they blamed Labour for the economic crisis, and stressed the subsequent need for deficit reduction and the imposition of austerity. However, the facts suggest that Tory propaganda works more smoothly than their economic policies. It did give them, though, the excuse they wanted to make savage cuts in government spending, which meant at least 350,000 job losses in the public sector, and huge reductions in benefits to the less fortunate; their real aim was a low-wage economy for the people and a low-tax regime for corporations and the rich. (news.financializer.com). As reported in the news.