Why Isn’t George’s Plan Working?

Ed Balls in Q&A on education
Image by Downing Street via Flickr

Ed Balls – Discredited

Ed Balls has been telling us that the austerity isn’t working.

“Even though it is clear in Greece, in Ireland, in other countries, in Britain too (that) this austerity isn’t working, the message is ‘Plough on, dig a deeper hole, carry on with an austerity that is failing'”

Mr Balls was a member of the government that caused the problem, so we have to take his pronouncements with a pinch of salt.

But doesn’t he have a point? Here we are, with the credit rating agencies threatening to downgrade Britain’s credit rating.

The government have in fact managed to get Britain’s deficit down. The national debt is going up a little more slowly than it was under Mr Balls and his friends.

But they have achieved this simply by raising more in tax. Government spending is up. And Mr Balls thinks they have cut too far!

They haven’t cut at all yet. Of course the plan isn’t really working. The government haven’t really tackled the issue yet.

Mr Balls’ is a siren voice. While the government are navigating around in circles, with no clear idea where they are going, Mr Balls is pointing to the rocks and urging full steam ahead towards them.

So you can have Tory incompetence or Labour malice. No wonder the electorate are disillusioned.

We need a new politics in this country, with both those old discredited parties swept aside. They have both failed us dismally, and they deserve no part in our future.

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4 thoughts on “Why Isn’t George’s Plan Working?

  1. As I understand it the downgrade is because the rating agency does not believe the cuts are deep or fast enough. The blame is two fold the lack of expected growth and starting too late too timidly. The answer of course is to slash taxes, regulations, spending and get out of the EU. It cannot be done not with this PM and the coalition. Better that Labour had stayed in power completed the destruction taken the blame and the right then come in pick up the pieces and do the necessary to restore the economy to health and competitiveness.

    • The Coalition plan was always to hold spending steady in real terms (i.e. increase it in line with inflation) and wait for growth to increase tax receipts. There is not and never has been any plan for cuts.

      I can see your point about the left getting the blame, but the Tories too are deeply implicated in Britain’s relative decline since the War and in the steady growth of the State.

      It is the entire political class that have failed, not just Labour.

  2. I’ve said it before and I’ll say it again – what we have now (a sort of zombie economy, stumbling along, not dead but not really alive either) is the best we can hope for. If the Powers that Be manage to continue this state of affairs, and avoid the Scylla and Charybdis of a deflationary slump, and an inflationary destruction of the currency, then they will have done the best they can for the nation. There are no sunlit uplands magically waiting if we just do X or Y. There is just social destruction and disintegration awaiting either side of the narrow ridge we are negotiating. Idiots like Ed Balls would pretty much guarantee that we end up in the depths below, one way or the other.

    • I can’t agree (except about Ed Balls!).

      Inflation and slump are not opposites. Time and again we have seen inflation accompanied by slump, and non-inflationary periods of growth. The whole analysis that says demand can be managed on a macro level and through it the whole economy is simply wrong. In the long run, prosperity can only be assured by a serious cut-back in the size and role of the State. If that doesn’t happen, then we have a pretty rum future to look forward to.

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