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Experts slam UK govt.'s budget proposal

US Rep. Ilhan Omar (D-MN) (L) talks with Speaker of the House Nancy Pelosi (D-CA) during a rally with fellow Democrats before voting on H.R. 1, or the People Act, on the East Steps of the US Capitol on March 08, 2019 in Washington, DC. (AFP photo)
Academics say chancellor ignoring the complexity of 21st century economy.

A group of academics have dismissed Conservative government's plan to enshrine permanent budget surpluses in law as a political gimmick that ignores basic economics.

The academics said a law aw forcing the government to cut spending or raise taxes every year to generate a budget surplus, characterized as Micawber economics, would suck the economy dry and within a few years could trigger another credit crunch.

In a letter, 77 of the best-known academic economists, including French economist Thomas Piketty and Cambridge professor Ha-Joon Chang accused Chancellor George Osborne of turning a blind eye to the complexities of a 21st-century economy.

It came in response to chancellor's Mansion House speech earlier this week during which he said the government should be forced by law to bring down the UK’s debt mountain to protect the economy against future shocks.

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