Austerity Forecasts for the UK (1980-2060)

The AUST index (see the details below) captures a number of issues of importance in UK Politics: (1) Increasing military expenditures to meet Russian Challenges and US withdrawals from NATO, (2) Increasing Health Expenditures to upgrade the National Health Service (NHS) and at the same time, (4) Not reducing Education Expenditures and (5) Not increasing overall Government expenditures.

Notes

• Shefner, 2015 here and here Austerity and Anti-Systemic Protest, JWSR.
  
  
  

UK AUST Measurement Model

The AUST index has three components that explain 96% of the variation in the indicators. AUST1 = (Overall Growth), AUST2 = (GE+G+GE-GH) and AUTS3 = (G+GM-GE-GH) where GE=(Government Education), G=(Total Government), GE=(Government Eduction), GH=(Government Health) and (GM=Government Military).

Overtime, AUST1 increased and reached a asymptote around 2010, AUST2 peaked in 1975 and 2010 and AUST3 increased from 1975 until 2000 and then started increasing again after 2010.

UK AUST1 AICs

The best AUST1 model takes the W-index as input.

UK AUST1 W Input Model

The AUST1 W-Input model is stable with negative effects from W3 (World Commodity Markets).

Over time

W3 peaks around 1980 and increases again after 2010.