Spending Cuts In UK Have Led To Bigger Deficits

The conservative government in the UK is cutting government spending but its budget deficits are growing.  Cuts in government spending will cause GDP to fall unless private spending increases to compensate for lower government spending.  That has not happened in the UK, or in the eurozone countries that have implemented austerity.  The confidence fairy has been missing in action.  Consequently government tax revenues  have been declining along with falling GDP.  The only way out of this trap is for government to implement spending programs that will stimulate economic growth.