The Guardian has reported this morning that:
Britain is facing a year of hard truths in 2014 as more cuts are needed and the economy still has big underlying problems, George Osborne will warn on Monday.
In a grim message to start the new year, the chancellor will say the "bad news" is that there is still a long way to go before a full recovery, as he sets out a five-point plan to help the economy.
So three and a half years in Osborne has admitted he has not reformed the economy. That's his first admission of failure.
Secondly, he's admitted that all his cuts have so far failed to impact in any significant way on borrowing. And, having taken a lesson in history from Michael Gove he's following the General Haig strategy book: when something has failed once you repeat it again, and again and again whatever the cost. That's his third admission, of bankrupt thinking.
Fourth, he said in 2010 the problem would be solved by 2015. Now he admits we have a long way to go.
And fifth? His fifth admission is in the messaging. He says there is bad news. It's honest. But it's an admission.
There is no plan, there are just admissions.
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I haven’t seen a plan by Labour yet. However that’s a minor problem.
Interesting data on this site. http://www.goldmadesimplenews.com/analysis/the-government-deficit-increased-by-1-5bn-from-april-2012-to-january-2013-9980/
great link
The plan is use any excuse to strip away the financial rights of working people, endlessly, and use the money that’s properly theirs to pay off the banks’ collective off-balance sheet derivative debts. They can’t be paid off though, because they stretch out into infinity. This is a charade, it’s just keeping the party going for the bankers and the establishment they’re hand-in-glove with for as long as possible before people finally get that this won’t end till it’s done forcibly. I’m encouraged by what’s going on with the cryptocurrencies though, as they are a big step towards making the banksters and their puppet governments irrelevant. Now you can get money, spending money, from a third party, one which isn’t the government (so you don’t need to elect charlatans to get it) and which isn’t the banksters either (mining, so you don’t have to go into debt). It’s not much but it’s a start. Those against the use of violence might care to take an interest in this approach.
“The plan is use any excuse to strip away the financial rights of working people, endlessly, and use the money that’s properly theirs to pay off the banks’ collective off-balance sheet derivative debts.”
Very true. This is being used as a smokescreen to strip away hard won gains by the working class of free health care, the social security safety net and decent final salary pensions.
The big lie is that this is “unaffordable” and that we can’t afford these things any more. Not true! Public debt has consistently shrunk for the past 50 years. In 1963 it was about 103 percent and by 2008 before the crisis, it was between 40-45 percent. This crisis wasn’t caused by out of control government spending. Much of the problem is paying out too little, not too much!
The media persist with the absurdity that the economy is growing, when before the credit crunch, cheering a derisory 0.8% growth rate would have been laughable. The debt is growing, as it can only do when restrictions on spending hamper GDP growth. Wages have lagged well behind inflation for nearly 4 years; small businesses still have major problems obtaining loans from bank; business investment is still chronically poor. Where is the impetus coming from that is driving our so-called recovery? The £1.4 trillion in personal borrowing may provide a clue that had no doubt been massively helped by the rise in house prices caused by the seriously unwise Help to Buy scheme!
All the BRICS countries have shown the way to true growth; that is, spend massively in real wealth creation building houses, investing in infrastructure, transport and using that to get out of recession!
Indeed, the one true proven way to get out of recession!
Actually, I think it’s a major problem, as Labour is just ‘Tory Lite’ just now, and they are barely distinguishable from each other. Their plan would just be the same cuts, but more slowly. There is No Alternative.
They are both clueless and need to learn about Functional Finance / MMT thinking.
Contrary to you claims, aggregate cuts have been minimal, really only cuts in real terms not nominal ones.
We are still spending too much money given the income that is being generated. Having done that excessively for 10 years, it’s going to take quite some time to get the economy back in order. Which part of that is so hard to understand?
The ‘left’ are still blaming Thatcher despite Labour having had 13 years to reverse things she did, yet expect the Coalition to fix things in 3 years when “there is no money left”…
That’s what happens in recessions