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Raising a flap about letterboxes
Arriving at one of East Finchley's ghost platforms
Restrained
Chase Park fair photos
A swamp of lies and disinformation
Nigel Jones
Katharine Pindar
One Comment
The big story on Friday and over the weekend was the publication by Centre Forum at http://www.centreforum.org/publications/slash-and-grow.html of “Slash and Grow? Spending cuts and economic recovery.”
The big hint is in the little question mark of the title.
After twenty-eight pages of detailed analysis, the Think Tank concludes, “Osborne’s plan for cuts imperils Britain’s recovery.”
“George Osborne’s determination to cut the deficit at all costs risks leaving the economy sluggish and the government still mired in debt.
“The Conservative Shadow Chancellor is determined to be tough with the government deficit, and says that the economy can withstand the shock by turning to exports and capital investment for growth. But the report, ‘Slash and grow? Spending cuts and economic recovery’ shows how this relies upon highly optimistic assumptions. Even with a monumental collapse in the pound, there is little reason to believe that Britain’s export sector could respond fast enough to drive economic growth. Instead, this policy may just as easily weaken confidence and drive interest rates up, which would wreck a fragile recovery.”
In particular, we should note author Giles Wilkes when he sums up with these words, “if the past few years tell us anything, it is that Britain’s macro-economy can be at far greater risk to private debts than public. What matters above all is that the public debt is sustainable – that we can reach a position where the outstanding debt is no longer rising, and the interest payments are affordable. This is as much about producing sufficient growth as debt reduction.”
It would seem that the redoubtable Wilkes has done it again, following his highly acclaimed, “A Balancing Act”.
I just hope that Clegg and his coterie have spent the last few days reading the pamphlet and adjusting both ‘our’ inept economic policy of bright blue and savage spending cuts and warm-up act for Cameron political strategy.
It is a national imperative that the threat posed by Cameron and Osborneis economic policy is exposed or we shall face a decade of deflation, stagnation, lost opportunity and with these the mounting inter-community tensions and social confrontation that could tear our towns and cities apart.
This wasted year has shown that the Labour Party is incapable of administering and implementing an effective economic stimulus package. Where has been the Government investment in capacity building? Where has all the funny money created by Quantitative Easing gone? And, because the Government has lost the trust of the public, it is unable to expose the danger of the Conservative economic prescriptions.
Step forward the Liberal Democrats.