Cuts? I smell a rat. Let's start denying this deficit properly(UK)

[CHIMO]

Here is the problem with the economy, and the coalition's stewardship of it, from an observer's point of view: they say "the huge burden of debt the last government left us with", and although I smell a rat, I cannot smell how large this rat is. Ed Balls or – more audibly, actually – Gordon Brown before him, can say this deficit reduction policy is lunacy, but it's hard within a context of adversarial politics to tell how much danger we're really in.

A Tory MP might say on Any Questions, "We have to do this or we'll end up like Ireland", and we might know instinctively that we're not Ireland yet not know exactly how unlike Ireland we are. It's straightforward to disagree with specific cuts – but maybe, because it's simpler, we're arguing about which tree to cut down when we should be arguing about the whole programme of deforestation.

Michael Mendelson is now an academic at the Caledon Institute of Social Policy, but his relevance for these purposes is his work in government: he was at the centre of fiscal policy during the great Canadian "bloodbath budget", the massive-scale deficit reduction undertaken by Jean Chrétien's liberal command in the mid-90s.

Canada's success was the ideal held up in Tory electioneering: it is rare to effect successful consolidation – to the extent that it's only happened six times among OECD nations since 1970, and one of those was Greece (in other words, it didn't happen but looked as if it had). Apparently Tories did solicit advice from key players of the Chrétien experiment prior to Britain's 2010 election, but only about the mechanics of deficit reduction. Nobody asked whether conditions were right. Nobody asked if it was a good idea to try this at home.

http://www.guardian.co.uk/commentisfree/2011/may/18/tory-cuts-uk-bank-debt