Tag Archives: economy

Vince Cable predicts second economic storm

Remember back in 2003, when Vince Cable was saying that at some point the economy would collapse because of the amount of consumer credit?

Well, he was right then and he’s now saying that we could be up for another Brexit fuelled crash.

The former Business Secretary, who hopes to win back his former seat of Twickenham, says that a combination of declining consumer confidence, job losses and inflation has the potential to outstrip the economic storm of the previous decade. That, if you remember, was the direst economic crash since the Depression in the 30s.

Vince said:

For Britain, the economic weather is arguably worse than it was before the credit crunch. The pound has plummeted, which is driving up prices and trapping consumers in a vicious Brexit squeeze.

Consumer confidence was all that kept the storm clouds away. But with job losses at everywhere from Deutsche Bank to Nestlé, that confidence is going to drain away further.

The Chancellor clearly has no confidence in the economic strategy of the government, because he knows that leaving the single market and customs union has the potential to devastate the UK economy.

Posted in News | Also tagged , , and | 4 Comments

Talk about economics, or we’ll be back to the party of the 8%    

 

I was delighted by Tim Farron’s performance at Spring Conference this year; his eloquence and passionate words show a good leader moulding into a great one. Yet, there is one thing that Tim’s speech missed: a distinct view upon the economy. The need for a Liberal Democrat policy on the economy is clear, with Tim himself saying in the speech ‘Britain needs a progressive party… a plan for an economy that makes the most of the opportunities in front of us’.

To put it short the Liberal Democrats need a clear economic policy so that when we get back into government (whether that’s in 2020 or 40 years away) that our voters know what they voted for. To my mind, we must focus upon investment. That investment starts with taking money creation away from high street banks and making it a government-influenced mechanism, as I called for in a previous article. Only then can we invest in our economy without extending the web of debt Britons and Britain find themselves in.

Posted in Op-eds | Also tagged | 54 Comments

Why politicians should tread carefully before using Quantitative Easing to build infrastructure

At a time when politicians grapple with how to use the tools at their disposal to reduce inequality of opportunity and outcome, quantitative easing {QE) can seem like an easy option.

To those blessedly unversed in the intricacies of the monetary policy tool that has dominated more than anything else the economy of the UK since the financial crisis, QE sounds like, ‘printing money and spending it on infrastructure.’

If only it were that simple. QE is a policy of central banks to buy the bonds  issued by their own governments, the aim being to push interest rates down and drive capital into assets more likely to make the economy grow.

So the first problem with any idea of using QE to increase government spending is that, well, the government doesn’t have the power to do it, Politicians can issue the bonds, the Bank of England can choose not to buy them, and the Bank of England is independent of government. 

Posted in News | 16 Comments

Lib Dems: Inflation rise hits the poorest

Senior Liberal Democrats have been commenting on the inflation rise today. I have to say that although  0.5% in a month is a lot, it feels like so much more. The prices of so much of my supermarket shop seems to have gone up by a lot more.

In Scorland, our Economy spokesperson Carolyn Caddick said:

Rising inflation shows that the British public are paying the price for Theresa May’s decision to take Britain out of the Single Market. With the pound falling in value by 18% since the referendum, the price of imports have shot up and broken the official target. Every Scot going on holiday abroad is seeing that their pounds do not buy what they used to.

Worst of all, the dramatic leap in food prices is hitting the poorest the most.

The fragile UK economy has been kept on life support by consumer spending, but with prices rising, that is now threatened. If Theresa May should change course immediately, and recognise that you can’t have a hard Brexit and affordable prices.

Our Shadow Chancellor Susan Kramer also blamed Brexit, saying that “You can’t have a hard brexit and affordable prices.”

Posted in News | Also tagged , and | 23 Comments

LibLInk: Nick Clegg: This is the future – the unstoppable march of machines

Nick Clegg’s latest Standard column starts off by setting out a number of current problems. One is very different from the others:

There’s a lot to worry about these days: hard Brexit, Trump’s protectionism, Diego Costa’s future at Chelsea, Putin’s manoeuvres, conflict in the South China Sea, Boris Johnson’s next gaffe, climate change.

It’s another that he focuses on, though. What happens to people as their jobs are replaced by machines. He uses the self-driving truck as an example:

According to one recent report, truck driving and related jobs employ more people than any other job in 29 out of America’s 50 states. It is estimated that there are 8.7 million trucking-related jobs in the US. It is one of the few jobs that still attracts a fairly decent income — about $40,000 (£32,000) a year — without requiring higher academic qualifications. In other words, it’s a precious ingredient in the American Dream: a dependable job, accessible to everyone.

It is a question of when, not if, American highways will be crisscrossed by thousands of similar self-driving trucks. And what then for the millions of truck drivers, their families and their communities? An economic earthquake, that’s what, which could leave millions of people out of work.

Posted in LibLink | Also tagged , , and | 16 Comments

Why liberals should embrace the Steady State Economy

One of the saddest things about the lurch to extremism and the right wing of the political spectrum over the past few years—and especially these last few months—has been that attention has been taken away from the significant problems with capitalism and its reliance on continued growth that the 2008 crash had exposed.

The Classical Economists, in particular Adam Smith and John Stuart Mill, had already theorised centuries ago that growth could not go on forever and that eventually states would enter the condition of being a “stationary state”.  John Stuart Mill wrote that the “increase of wealth is not boundless….the …

Posted in Op-eds | Also tagged and | 35 Comments

There are issues more important than Europe

David Cameron famously told his party to ‘stop banging on about Europe’, are we in the Liberal Democrats in danger of doing the same? I fear we are.

With our seemingly exclusive focus on Europe we are missing a more fundamental concern for British voters, to paraphrase Bill Clinton’s campaign message ‘it’s the economy stupid!’

An Ashcroft poll conducted in September this year showed that although most voters agreed that negotiating the best Brexit deal possible was the top priority for the country as a whole when it came to issues facing themselves and their families it came fourth behind tackling the cost of living, improving the NHS and getting the economy moving. This doesn’t surprise me.

Like many I was dumbfounded by the result in June. For the first time I felt there were huge sections of our society that I neither knew nor understood. It would be easy to write off the 17,410,742 who voted to leave as xenophobic, racist, ignorant or just conned by an anti EU media establishment. That would be a mistake.

I have spent the last few months thinking about why, when to me the arguments for remain were clear, we as a nation voted to leave.  My belief is that confused by a torrent of dubious facts from both sides a significant proportion of the electorate assessed the ‘state of nation’ and concluded that it simply wasn’t good enough. With nothing to lose they voted accordingly.

Should we really be so surprised by this? Faced with falling real wages, declining social mobility, greater financial insecurity and government policy that rescued the banks but let the steel industry wither it really isn’t that shocking that so many voted as they did.

As Liberal Democrats we are certainly doing a great job articulating the publics concerns about Brexit. Since June we have become the rallying point for those deeply worried about the implications of a hard Brexit and a recent YouGov poll  showed that we could gain significant electoral advantage in the event of a snap general election. 

Posted in Op-eds | Also tagged and | 39 Comments
Advert



Recent Comments

  • User AvatarPeter Martin 28th Apr - 9:41am
    Lib Dems will be pleased to know that Vince Cable is very probably right and that there will be an economic crisis caused by the...
  • User AvatarKeith Sharp 28th Apr - 9:35am
    Interesting idea -- perhaps ( as well as and not necessarily instead of) run an on-line petition calling on T May and J Corbyn (to...
  • User AvatarIan Sanderson (RM3) 28th Apr - 9:34am
    Sue sounds exactly what is needed for the next Southport MP. Like her two predecessors, she has a good local record.
  • User AvatarSteve Way 28th Apr - 9:12am
    Whilst I tend to agree with everything he says here, sadly it will be dismissed as yet mor project fear. I think some politicians (not...
  • User AvatarTom Morrison 28th Apr - 9:11am
    When Sue was the Chair of the North West region she was always a great support for young members of staff, of which I was...
  • User AvatarAndy Coleby 28th Apr - 8:52am
    Good news about Rachel as any publicity is good publicity fof the Liberal Democrats as DisMay is hogging the headlines with her bland mush. Hopefully...