Osborne is bang to rights – when is Labour going to take him down?

Osborne over-reached himself badly in this last week, what with bare-faced lies, twisting of the figures to save his own skin but which no independent expert can validate, childish responses to well-placed questions which left him rattled and blustering, concealing his real underlying motive to take Britain back to the enfeebled state of the 1930s, insisting in every other breath that he has a long-term economic plan which is true only in the sense that it’s the wrong one, and now to cap it all taking on the BBC with accusations of ‘utter hyperbolic nonsense’.    Yet he continues to dominate the landscape because the Opposition still does not have a recognisable alternative macroeconomic policy, their appeal to cutting less far and more slowly over a longer period does not present a convincing shift away from austerity, and above all does not go for the jugular that Osborne has handled the deficit disastrously with maximum pain to the country and minimum benefit because he’s fixated on decimating public services rather than generating sustainable growth (which his ‘recovery’ soon to fizzle out certainly isn’t).

Osborne has committed two classic economic howlers.   He made the centrepiece of his policy in 2010 that he would eliminate the structural deficit by 2015.   He has missed his target by 150%!   Anyone in business who presided over a failure of such enormity would be out on their ear before they could say Sorry, not that Osborne would ever deign to make an apology.   Second, the whole declared objective of his policy was to bring the deficit down year after year.   The fact that the deficit is going up this year (despite Treasury fiddling of the figures) and will go up further next year would make any CEO in the real world jump before he was thrown out on his neck.    So why doesn’t Labour go for his throat by putting down a censure motion on him as the biggest failed Chancellor in modern times?

The answer to that, unfortunately, is that Labour is unwilling to play the one card which would sweep Osborne away.  It has never made the obvious and compelling point that there are two ways to cut a deficit – by reducing expenditure or by increasing income.   Alastair Darling chose the latter and by generating jobs and growth cut the deficit by £40bn in 2 years.   Osborne immediately junked this successful policy and went heavy on austerity, with the result that the deficit will have come down by a meagre £12bn between 2012-15.   Why doesn’t Labour hang that round his neck and demand an unqualified switch from failed austerity to highly successful growth?   The economic record is irrefutable, Osborne has no answer except lies, bluster and fiddles, and it could swing the election.

 

5 thoughts on “Osborne is bang to rights – when is Labour going to take him down?

  1. Thatcher’s liking the economy to a fixed domestic budget spoke to the electorate in 1979 even though macroeconomics, particularly with a sovereign currency, really doesn’t equate. The reality is more like self employment with more work giving a greater income that being on a fixed wage.

    As you say, there are two ways to drive down debt, one is to spend less and the other is to earn more. Of course it’s possible to do both, but right now the local councils are cutting to the bone and those at the bottom of the heap don’t have enough to survive. Further cuts will indeed take us back to pre-war levels of poverty.

    Labour should stop running scared. Nail the austerity lie and put forward a vision of the future that people can look forward to instead of dread.

    Please win next time.

  2. i wonder thatchers way wasnt the way was it our money is being syphoned to offshore accounts by these so called companies yet selling all our silver are labour going to say to these companies you aint trading here and start the fight back tacking control of the old way but to bring jobd back for our younsters who lost out oin all this but leaving councils to build houses once driving down those high rents that the tories like failed thatchers policys wasnt the way but was the way if you were greedie yet to bring back all that was privitised would be a good start has this will instead of wealth to those who have much instead bring jobs so that they can work pay taxes and once more smile but companies have ben allowed to get away with much tax avoidence are labour going after them whilst the peasants pay taxes these large companies get away with it jeff3

  3. I’m hoping that it’s a question of tactics, i.e. not wanting to show their hand too soon before the election. Well, without hope, the prospects are too depressing to contemplate!

    So I hope that they are listening to economists who advise alternatives to austerity, and that they are making plans for a better future. As you and others have said, the money is there, but it has to be released and put to better use. It will entail something of a revolution but as the previous system has failed, and failed miserably, the time has come for a complete change.

    How about sending a copy of your excellent book to Ed Balls and Miliband as Xmas presents? Hopefully they’ll have time to read it during the holidays!

    They should perhaps also read this:

    “….. the OBR’s chilling analysis of the spending cuts that are set to come…”

    http://touchstoneblog.org.uk/2014/12/the-real-story-of-the-autumn-statement-the-obr-tell-the-chancellor-to-think-again/

    These cuts are already really hurting the most disadvantaged in our society, e.g. disabled people are being denied the help and equipment they need for very basic functions such as eating and washing. This is happening in affluent areas such as Cheltenham! And the forecast that the situation will get much worse really is far too depressing to contemplate.

  4. Sad to say that the Labour party are no better than the Tories. If Labour gets elected, both Ed’s will spend 3.5 years blaming the Tories and the mess they have been left and not to do anything postive for the average joe public until they want votes to be re elected and then theyll make false promises.

  5. If people want a better future, then we must take back the control of making money and put it into the control of the tax payers of tjis country and not with a run for profit organisation which the bank of england is. Then we must get rid of fractional reserve banking.

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