Economic policy in the UK is essentially the liquidationist policy advocated by conservatives during the Great Depression. Fiscal contraction will only worsen an economy that suffers from a lack of demand. The UK needs economic growth to improve its short term, and medium term prospects. Austerity is not working. Sensible individuals change their positions when the facts suggest that they have been wrong. The UK government is doubling down on its austerity strategy instead. It is a strategy that will lead to a lost decade.