does that come from an inherent misunderstanding of how economies actually work on the government's part so i do think it comes from a misunderstanding of how economies work you see i think the coalition came into office with a belief which was often expressed by george osborne that as soon as a stair a key was seen to be working as soon as the government committed itself to a credible plan of deficit reduction everything else would perk up there'd be so much confidence that the economy would start growing again but that was wrong because it's real factors not just psychological factors psychological factors are very important but it's the real factors the real market that is available to businessmen that cause them to want to increase. their business and the government was shrinking the market by its policy so it could talk up the economy all it wanted but the policies were pointing in

a different direction austerity we now know hits the poor significantly harder than the rates presumably that means that during this recess and the gap between the rich and the poor well why didn't even fire yeah that's that's already happening real real incomes have been going down because prices have been going up a bit and of course welfare benefits are being slashed. a lot of a lot there are lots of cuts in the public services and the rich are better able to insulate themselves against some of these effects for example house prices in london haven't gone down at all especially in the wealthy areas in fact they may be going up a bit so the world of the wealthy has been well maintained but people who have relied on incomes from wages have been hit and of course there has been since the beginning of the. recession a very. big rise in unemployment even more significant perhaps

a very big rise in part time employment is happening jay graphically as well where rich regions get richer and poorer regions get poorer due to a strategy by the governments in which areas that do economically well will apparently be rewarded while areas that do economically badly will be left to kind of fester and to generate what's the economic justification for that well i think the government wants to back winners. and. and it believes that the winners come about through self. through through act the private private initiative sensually and so it wants to back back strong and hope that that will encourage the weak but of course this gap between the regions has been longstanding and recently most of the world that's been generated in the last ten twenty years has been in

southern england and so the gap between the north and the south which had been actually getting less in the mid medias of the century has last century started to grow and economists seem to almost universally to reject austerity and embrace advocate borrowing and spending instead why isn't the government doing that well i don't think you're right i don't think the majority of economists do i mean the majority of economists say that the government is right to in its in its budget a budget deficit in its deficit reduction programs but it needs to do something else but what they didn't explain is how doing something else can be made consistent with a reduction in government borrowing. you know government produces borrowing they say must reduce its borrowing then it's hard to know. it's going to do something

else because unless the knesset raises taxes for example that may be an alternative but very few people are advocating that taxes should go up so they're in this sort of halfway position a more or less there's no alternative to a stereotype but a stair it isn't a growth policy therefore the government should do something else but when it when you actually ask the more what should it do they get all vague. i think they should cancel a lot of the hysterically policy i think they should cancel the cuts in capital spending particularly and because of that that those schemes were ready to run when the coalition took office and they have been put into cold storage they could be this is buildings building schools building building houses hospitals all these projects that were canceled because the government was cutting down its spending i think should be un cancelled i think they should be revived so you're saying you've

got to speculate to accumulate in a way not speculate spend you've got to spend because you see at the moment they're not meeting their deficit reduction targets they're not reducing the national debt in fact it's going up the whole time. and it and it's going up because the economy is going down the economy is what provides the government with its income and if the economy is shrinking the income of the government shrinks at the same tired and therefore the deficit rises and something like that has been going on so the policy can't even succeed in its own one of your colleagues an economist called james keane has suggested a scheme that he calls quantities of easing for the public saying that the debt that private individuals have needs to be reduced under scheme he says that cash should be issued to individuals and those with debt would have to use it to pay that debt down and those without it would have a cas injection. it sounds like

a great school wouldn't you think it would work but well i've suggested this as well in an article in the new statesman last week yeah that's fine i mean if you put money in that into the hands of the people. and make sure they as you say spend it in one way or another. then i think that gives a boost to the economy because they could increase their spending and therefore set up a demand for shoes and clothes and food and all the things that people spend money on and so that'll be good for business that's i think that's a good idea actually suggested that the government give every household one hundred pound christmas present time limited so they need to do something with it can't just put it under the bed would that kind of policy be popular people were constantly hearing that there is no money now i think it would be popular i think everyone enjoys getting christmas presents. and people really expect them from the

government and we've seen a europe wide backlash against austerity what do you think prime minister david cameron's chances are being reelected if we continue if this territory continues if there's no change of policy if the measures that are now being proposed small or is ineffective as one thinks they may be then i think his chances of winning the next election a very very small. because i think that there won't be a recovery his best chance of winning an election in two years' time is if there are proper green shoots of recovery and people can see them and they feel they're feeling better about the economy they're feeling better about their prospects they're feeling better go about getting jobs and feeling better about getting more income then i think he'll benefit from that and they're have a good chance of winning but i don't think anything like that is going to happen under present policy so i think their chances of losing must be very high it's

a keynesian idea that capitalism is a way towards working less and having enough is the current economic crisis is a result of that so it's time that we thought of the rails well that was a very long run i mean that was a long run idea that keynes had that in the end a successful capitalism should enable people to work less. and enjoy life more and he thought hours of work over time would shrink as we got richer but that assume that we wouldn't fall into these holes that you know the progress would be steady and you wouldn't have any more slumps but we're in we're in a slump we had the big collapse and at this point the priority is to get as many people back to work as possible and get as much production as you can because that. full speed things along speed the road to utopia. so i think you mustn't

confuse the short what needs to be done in the short run and an hour long run prospects one of the things that the railed against this theory is this consumerism that we've all fallen into the spell of where we have to work more to buy more to have more are you worried that more crises will follow because of the way we work and because of what we're working for it's a very good question i think we are consumption mad society and in order to go on consuming we have to go on earning money by working and working harder than most people want to and getting into debt and then the whole machine is driven by advertising and that does create a problem it means that as technology reduces the number of jobs and yet we all under this impulsion to consume more and what how do we see things developing what should happen is that on the whole we should give up growth as the top priority.

and make sure we have enough work sharing so that people can get work but not most people working forty or forty five or fifty hours a week and then another fifteen or twenty percent not working at all or only working very part time we need to sort of distribute work better among among among people who want to work and also make sure there's more leisure so people can pursue you know pursue things for their own sake do things that interest them. and that's the way forward otherwise we're all sort of treadmill and i think. you're right they'll be more and more crises as a result of it no dramas cadel's cool thanks.

wealthy british style soccer balls that's not on. the. markets why not scandals. find out what's really happening to the global economy in the kinds of reports on. the news a secret laboratory to mukherjee was able to build a new its most sophisticated robot which all unfortunately doesn't give a dollar amount anything tim's mission to teach music creation why it should care about humans in the world this is why you should care only on the dot com. by horse. by tractor. and by car for the road ends. as

a carpenter. as a stove setter. as a farmer. as an assistant. as a friend. as a relative delivering post and delivering. offers an air show and an issue. doesn't matter you. most of the residents never profit from the film and since you'll see him coming our signature there when you look up and there's one check in on you he's the alpha beta gamma he was always the find out between his legs out there know what's going on. right now. shells become income

mortal danger and a piece of art. is exempt. from free. and. our team.

latest news on the week's top stories polling stations in venezuela waiting for the last voters to cast ballots to sufficient rising a sea of longstanding leader will go to charges or his democratic opponent. will take the helm in caracas. for showing between syria and turkey as fresh violence hits damascus with a car bomb exploding outside police headquarters. italians theory over mounting cuts descends into clashes while civil servants marred for their jobs in spain. sports up next stay with us.

well i welcome along with two the sports headlines here is what's coming up title to say things remain on top of the russian premier league table with the two you know when that jim hammer. moving on up reigning world champion sebastian vettel wins the japanese romper a move within a four point six championship leader number one. on the china crisis world number one victoria azarenka big smile reassure africa in the china open final in straight sets to claim her fifth title of the season. first football and angie remain on top of the russian the premier league following a two know when. because sitting side how to do it the hard way that i play with time and. shall call off sent off after ninety minutes for this foul me edge of the

box second half goals from your asia often samuel eto secure when the baddest outfit now on the ten and twelve non-competition. meanwhile one of the biggest games in the calendar when the way access cars they city rival spots out of the news need to stay within two points of the leaders in second place open the score in the fifteenth minute after being set up by consuming honda the japanese international then turn school and doubles as cars in a fifty two minutes in sealing the two nil victory their seventh win a night we were happy about to come out today's game especially because it is the biggest day really in russia winning this game is always very important for us. as a team and for supporters to so hopefully we can keep doing good and trying to to fight the first places. elsewhere and design former champions. you know last time call

one colleague not to be schooled again you go in just a minute with the winning problem side tonight in current standings. elsewhere in russia today the defending champions in a run out through no winners present all thanks to girls from constantine's that we are not very far as our. over in england manchester united won three zero at newcastle fans too old for patrick several jonny evans and tom cleverley tottenham secured their fourth league win in a row beating aston villa to strike from steven caulker and aaron lennon full of the point at southampton following a dramatic two machine draw europol and study. i mean field. to formula one now reigning champion sebastian vettel has moved to within just four points to fernando alonso in the overall standings after victory at the japanese grand prix the german starter position and his red bull was dominant throughout the coming hundred twenty seconds ahead of ferrari's philippe massa. be ashy of sound. out of

the. box and lewis hamilton battles teammate mark webber. after he lost control of his the start of the race however things were much worse for the overall leader from the moans i had to retire after this crash on the first lot. of this is how the overall standings the look now the reigning champion factor is within striking distance of a long as i was the. driver's title in a row has not let the standings sorry for this season but is now just full points behind the spaniard with five races left. now to tennis and maria sharapova has been beaten in the final of the china rope early russian was outclassed by world number one victoria azarenka going down in straight sets it was a poor start for sure up over as a ranker stormed into full of lead in the first set to eventually take it six three belorussian title dominant dominant in the second edition just one game into her fifth win of two thousand and. well. men's competition well i'm

a to know about joke of it was victorious you had to fight hard to take the first set to infringement tsonga on a tie break. found the girl in much easier in the second taking six to claim his fourth title of the season. because it was very special and. i haven't lost many matches in visit actually lose a match since i've been coming in beijing. only one at the olympics and three titles. i love this tournament i love the conditions here. to rugby where new zealand have finished the inaugural rugby championship with six wins from six matches starts after they concluded their campaign with a thirty two sixteen win over south africa having wrapped up the title with a gang to spare blacks were looking to complete the series with a one hundred percent record but they actually fell behind in. place of bryan habana score for us try after thirty minutes as the host took

a. half time dressing down from coach steve hansen changed the complection of the match as the visitors went through the games in a second period secure in a sixty in a row now just one victory away from sesame record among players nation. now boxing great mike tyson has defended the current heavyweight division and in particular the klitschko brothers the ukrainian jew have dominated the category for the best part of a decade but often criticized for their unspectacular style with some labeling the pair boring i think it's good it's probably not that ferryman we people used to you throughout three meals to our drama it's almost like a soap opera you know we were fighting but it's very very serene because the champions are that way because it's good to refight you can't take that away from you know you can't blame be everybody in the vision. now if the ice were in the kontinental hockey league spot moscow frash the nominee for one on home ice your

mikhailov open for the muscovites in the opening period the games effectively done and dusted in the second where the host added three more goals the third period was merely a formality as the minutes i pulled one consolation for one was the final school. and the other games out of our need a shootout to be done for three spartak moscow had no problems against unarmed men scares the red and white in victory for one is you saying sevastopol was one the winners are now more rigorous ukrainian side on boston yes last instance is well in the late game of the day the moscow peace love and treaty were in slovakia. so it has been three weeks since the n.h.l. lockout was announced since then the continental hockey league has gone from strength to strength with the world's brightest stars moving across the ocean i'm here are some of the most spectacular moments of the k h l has produced in the last ten days.

live. live. live live. live

.

that is all from the world of sport for now well there's plenty more later here on the outside. world the. science technology innovation all that is to balance around russia we've got the future covered. by horse. by tractor. by car where the road ends. as a carpenter. as a stove setter. as a farmer. as an assistant. as a friend. as a relative delivering post and delivering. if

the. culture is that so much of him and all the each visit is a minute mark when is the end really the end of the strategy of the u.s. led mission in afghanistan is in a shambles green on blue attacks against coalition. while. calling. offers an air show and an on a mission museum was

a matter you. most of the residents never profited from the performance notion of coming our signature trip there when you look up and there's one captain i knew his alpha beta gamma he was always the final trim a tree in his leg i went out there know what's going on they can pinpoint. the dirt right now. those shells become income mortal danger and a piece of art is still a campaign based structure in making something three. bombs. on our team while. telling us offers an air show and an on a mission museum was a matter you. most of the residents never

profited from the performance notion of coming all sinners a trip there when you look up and there's one captain i knew in his. alpha beta gamma he was always the find out to him a treat he's letting a guy with out there know what going on they can pinpoint. the dirt right now. does shelves become income mortal danger and a piece of art still sticks and base just in making ten cents in three. bombs and. on our team.