Osborne thinks long-term

SHADOW Chancellor George Osborne has joined forces with US economist Jeffrey Sachs to warn about the dangers of not acting fast on the deficit.

The two say delaying action on reducing the deficit will “darken consumer confidence. In a paper out today, Osborne and Sachs say recovery is a medium to long-term project and investment should go into the next generation of families, technologies and workers.

They say that the government and private sector “will be complimentary forces in a real, sustained job creating recovery” and that the public sector still had a role in growth.

Sachs, an economics professor from Columbia University in New York, backs the “Robin Hood tax”, which proposes to tax financial institutions in the US for every deal completed.