Cameron is consigning the UK to stagnation

A couple weeks ago the UK got its credit rating downgraded.

Brad DeLong submits: Martin Wolf:

Martin Wolf: A response to Roger Altman: Roger Altman of Evercore partners is a friend of mine, a distinguished public servant and a respected financial expert. But his column “Blame bond markets, not politicians, for austerity” is, in my view, gravely mistaken. Let me quote the first two paragraphs, since they go to the heart of the matter:

1. Slow revenue growth means that fiscal crises will be more severe than expected. 2. The deeper point is that the revenue growth/utility growth gradient has fundamentally changed, due to the "real shock" (as they call it) of the internet.  Facebook is fun but it doesn't produce a proportional amount of revenue, and ultimately that has implications for asset pricing.