Martin Wolf is robust this morning in the FT:
David Cameron's “there is no alternative” speech last week on the UK economy has aroused much criticism. This is justified.The British prime minister's arguments for sticking to the government's programme of fiscal austerity were overwhelmingly wrong-headed.
He's right of course, most especially on this:
Mr Cameron argues that those who think the government can borrow more “think there's some magic money tree. Well, let me tell you a plain truth: there isn't.” This is quite wrong. First, there is a money tree, called the Bank of England, which has created £375bn to finance its asset purchases. Second, like other solvent institutions, governments can borrow. Third, markets deem the government solvent, since they are willing to lend to it at the lowest rates in UK history. And, finally, markets are doing this because of the structural financial surpluses in the private and foreign sectors.
Cameron can't get the basics right; what chance for the rest? None at all, as Wolf shows. I suggest reading the whole thing - and it is possible for free - you just have to register.
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Recently I read an analysis of what Cameron says in his many pronouncements and speeches and what is actuallly true. I forgot about it until yesterday when I read a brand new report that one of your blogs linked to (The lies we tell ourselves, a report by the Baptist Union, The Methodist Church, Church of Scotland and United Reform Church).
As well as being one of the most succinct and powerfully argued reports I’ve read (and I say that as a secular person) it’s a powerful expose of how, in the space of a little over two years, this government (primarily – though new Labour also had input) and its supporters in the media have demonised the poor. Indeed, the quote from John Wesley (the founder of Methodism) that opens the report (‘So wickedly, devilishly false is that common objection, “They are poor, only because the are idle”.’ 1753) encapsulates exactly the position of this government and rightly locates in a historical hatred of Tories for the poor, unfortunate and infirm.
The report then goes on to examine six of the myths that have been created to support the demonisation of the poor. The ‘evidence’ for each is then examined and demolished.
What does this have to do with David Cameron and thus with the subject of this blog? Well, firstly Cameron is the leader of this government and thus head cheerleader for the demonisation of the poor. But second, and far more significant, is that the report examines in some detail a speech he gave in November 2011 about so called ‘troubled families’. It contained, amongst others, the statement that the state spent an estimated £9 billion on just 120,000 ‘troubled’ families (or £75,000 a year). This and many other ‘facts’ in that speech and many others in similar vein by other members of the government since are found to be utterly false.
So the moral of the story is this: Cameron has form as someone who is extremely relaxed about saying anything that suits his and this government purpose. Accuracy and facts have very little to do with it. Indeed, I have a strong suspicion that when historians look back at this government they will find that they have surpassed all previous governments in modern times with their ability to distort any data, information, survey or anything else in such a way that it supports their own ends (as the OBR were forced to point out last week). In short, they are the masters of government by misinformation, disinformation and deceit. That applies to their pronouncements on the economy as much as any other policy area.
Note: ‘When Jesus said “the poor will always be with you”, he did not then add “so that’s all right then”. And yet, as the report goes on to note, ‘this quote has been used over the centuries to justify an acceptance of the injustice of poverty and complacency in the face of the poor, but is really a challenge that our responsibility as individuals, and as a society, to those most vulnerable never goes away.’ (The lies we tell ourselves, 2013, p.8)
True….
Richard
Hallelujah – at last
It looks like the Tories have taken a leaf out of the US Republican party’s book with regard to playing fast and loose with, if I’m being charitable, “facts”!