The colourful Tory mayor of London, Boris Johnson has come out forcefully in opposition to the disasterous austerity policies that are at the centre of Chancellor of the Exchequer George Osborne’s economic strategy. Following in the tradition of British Conservative Keynesians like former Prime Minister Harold Macmillan whose family publishing house had been John Maynard Keynes’s publisher, Johnson speaking at the Davos Economic forum called on Osborne and prime minister David Cameron to abandon the failed austerity program and turn instead to an infrastructure investment stimulus program in order to reverse the slump that Britain now finds itself in teetering on the edge of a triple dip recession. The timing of his speech was auspicious since the British Office of National statistics released data that showed the British GDP shrank in the last quarter of 2012 by 0.3 %.
If the next quarter shows negative growth the triple dip recession will be official. The Osborne, Cameron , Clegg strategy of growth and employment creation through austerity has clearly failed as I and other Keynesians predicted. The time to admit it and change course is now. Its good to have the Mayor of London on board the progressive lower unemployment train. Its a position that suits his up beat view of London.