By Claire West
Students of economics in 20 years time will no doubt study this recession and with the benefit of hindsight know what should have been done and how quickly.
The late American economist, Paul Samuelson said "Economics has never been a science - and it is even less now than a few years ago."
The Sunday papers focus on two main fiscal developments, The Comprehensive Spending Review and the spending policies of Manchester United.
Interesting comparisons can be made between the British Government and the world's most famous football club in that they are both highly leveraged - however one is promising to invest in its future (Man United) and the other is making massive cuts.
What the Papers Say
"The idea that we are about to go bankrupt is pure political spin to justify a familiar ideological project of a smaller state." Ed Miliband MP, Leader of the Labour Party writing in The Observer.
Professor Christopher Pissarides, writing in the Sunday Mirror said that George Osborne’s cuts package announced this week meant he was taking, “unnecessary risks” with the economy.
The London School of Economics professor was awarded the Nobel Prize for Economics earlier this year for his work on the economics of unemployment, especially job flows and the effects of being out of work.
The Chancellor had defended the cuts saying they were needed to avoid a ‘Greek-style’ meltdown but Professor Pissarides column in the Sunday Mirror said;
“We have just gone through a severe recession and there is still a lot of uncertainty about the housing market and the level of economic activity over next few years. Unemployment is high and job vacancies few. By taking the action that the Chancellor outlined in his statement, this situation might well become worse.”
Earlier in the week the Institute of Fiscal Studies said that their analysis; “Continues to show that, with the notable exception of the richest 2%, the tax and benefit components of the fiscal consolidation are, overall, being implemented in a regressive way."
Deputy Prime Minister Nick Clegg who responded by saying "We just fundamentally disagree with the IFS," must surely be skating on thin ice because it was not that long ago that his ‘colleague’ Chancellor George Osborne described the IFS as one of the most "credible independent voices on the public finances, taxation and public spending".
Ed Miliband responded to Nick Clegg's attack on the IFS by saying;
"Instead of trashing the Institute of Fiscal Studies, the Deputy Prime Minister should be owning up to the truth. This was a spending review driven by ideology, hitting lower and middle income families the hardest. We have consistently warned about the consequences of cutting too far and too fast. The unedifying spectacle of Mr Clegg rubbishing the IFS will convince nobody of the government's case."
And on Wayne Rooney?
Well it seems that even Roman Abramovich has is cutting his pending and calling for a players wage cap!
Now that's something we can all agree on!