[Traduk]

The article, in the third paragraph, does highlight the expectation that the shortfall in income will be taken up by increased personal debt which implies that people will rather borrow than accept a lower living standard.

If that assumption is the basis for Osborne's hopes for private sector growth then he needs to do a 101 course on mass human psychology. The opposite is the most likely effect with people taking austerity measures on the nose and through fear going beyond that and salting a little away for the many rainy days to come.

The more dire consequences are that the "hoped for" resurgence in the private sector will not take off at all but may sink with the public sector cuts and more importantly the public mood will become bitter and resentful. Bitter people who have been compelled to go from prosperity to austerity are militant people in the making and the TUC turnout shows that many are well on the way to bitterness. Give it time and we will not be able to keep up with the number of concurrent strikes.

We are not an island unto ourselves when it comes to economics and our fate may well lie in what the USA does when their QE phase ends in 12 weeks time. The expectation is that interest rates will start on the path back to reality and the default is that we will be compelled to follow. If that comes to pass then the pressure on mortgage payers will be excruciating and the natural reaction is higher pay demands.

An awful lot of the coalition's ideas are based on little more than "hopes" based on static expectations in a dynamic world. They have lasted thus far because their policies were phased but now have to face the potential wrath of the public in the May local elections and possibly icy cold winds blowing from the USA later in the Summer. Labour who by default should never govern again must be quietly confident that they will get back in on a protest vote long before the 5 years are up.

Nothing is logical in this life and as was commented when the ideas were put forward. The public can talk the talk but will they walk the walk, the answer is a resounding no, they never have nor ever will.