If at the coming general election we put Cameron’s Tories in power then I thought we’ll risk a double dip recession after reading Giles Wilkes at Freethinking Economist there’s compelling evidence Cameron’s cohorts will definitely give us a double dip recession.

One of the main reasons is that, contrary to the prevailing political rhetoric, we are already set to have a significant fiscal squeeze THIS YEAR.

The government is going from adding 23 billion of demand to the economy, to taking some out. If that 23bn is not replaced in terms of demand by the private sector in some way, then we get a second dip into recession.

As Giles also adds the view of the National Institute of Economic and Social Research

There is no reason for tightening fiscal policy now. People are worrying about long-term debt problems when they should be worried about short-term output problems. Source: FT.com.

This is exactly what the Tories propose – a tightening of fiscal policy.