Dig deep enough into the accounting side of a bad economic policy and you'll always find something alarming. In the case of the UK's disastrous plan to cut government deficits during a deep recession, the accounting problem comes in the form of household debt projections, which Krugman brings us today via Yves Smith (whose charts are always awesome).
Because the only way the economy can avoid taking a hit from government cuts is if private spending rises to fill the gap — and although you rarely hear the austerians admitting this, the only way that can happen is if people take on more debt.
Why is that? Can't households theoretically make more money? No. Since US deficit spending is the only source of net US dollars, households as a class cannot gain dollars unless the government provides them via deficit spending. The only way they can increase their spending power in the face of falling deficits is to borrow.
We don't need more consumer debt - we need less.