Author Archives: Vittorio Trevitt

The social impact of the measures introduced by the Coalition Government, as I highlighted in a previous article, has demonstrated the failure of a strategy based primarily on austerity, and lends credence to calls for an alternative economic strategy close to the heart of the rank and file of the Liberal Democrats, based on encouraging growth through measures such as tax cuts and increases in the minimum wage to stimulate consumer spending, and investment in public works such as roads, hospitals, and schools to create jobs and boost industrial activity.

Criticisms have been levelled against those who call for expansionary, Keynesian-style measures to encourage growth, arguing that the additional output generated would not yield enough tax revenue to finance tax reductions or higher government spending.

The global financial crisis of 2008 has left Britain facing one of the most difficult periods in its economic history, as characterised by falling real wages and deepening poverty amongst the poorest members of our society. The actions taken by the Coalition Government since taking office in 2010 have arguably done little to tackle the social consequences of the economic downturn and have, in fact, exacerbated these problems, casting doubts on the validity of the government’s economic strategy as a whole.

Business groups have expressed a lack of confidence in the Coalition’s shambolic handling of the economy during much of its time in office. In November 2012, the Recruitment and Employment Confederation awarded the government 5 out of 10 points in its record on creating jobs and opportunities, noting that the government’s decision to cut back on work experience in schools and careers advice could reduce the prospects of young people entering the workforce, while a senior Conservative politician in April 2013 accused George Osborne of caution and timidity by not taking bolder measures in restoring the country’s economic health. The Coalition’s economic strategy also came under fire a year ago from the IMF, which drew attention to the country’s lacklustre economic performance, with output 3% less than it was in 2008.