Cut to spend. Or Sir Sorrell’s law

Posted on 24/08/2011


Sir Martin Sorrell, chief of advertising and PR group WPP, has been on the airwaves seemingly talking up his own brand of economic theory: Cut to spend.

On the BBC earlier he appeared to urge governments around the world to start spending (including France) – an odd suggestion given current financial turmoil and current IMF diktats to countries needing financial assistance.

This is also the same Martin Sorrell who in 2010 backed the Coalition spending cuts, saying on Newsnight and in the Telegraph:

They’ve done the tough stuff and they’re dealing with the deficit.

Adding that the cuts were the “envy of Washington.”

And, of course, this is the same influential boss – and government adviser –  who George Osbourne had in his sights when he cut business taxes, which some suggest was in return for WPP’s return to a UK base.

So, cut spending, cut taxes and then splurge on a new round of ‘mid-term’ government profligacy (presumably with some handy income for WPP’s M4C company). And the fiscal merry go-round will continue…