Osborne’s boastfulness comes back to haunt him

Osborne is now in trouble.   One after another, all the things he so confidently promised 5 years ago have now turned to dust.   He pledged then that the deficit would be down to £37bn by the end of 2014; it is now actually about £100bn.   He said that with economic growth real terms pay rises would soon return; they never have.   He loved to boast endlessly that Britain had the fastest rate of growth in the Western world; now that has been blown apart today’s announcement that Britain’s annual rate of GDP growth in the 3rd quarter of this year was just 2.6%, whereas the annual rate of growth in the US in the 3rd quarter was nearly double that, namely 5%.   He claimed he would rebalance the economy in favour of manufacturing and set in place ‘the march of the makers’; the opposite has happened, with the latest export figures registering the worst in Britain’s history.   He promised that private investment would rapidly recover; it has recovered a bit from a deep fall in 2008, but is still below pre-crash levels and far short of what is needed to bolster sustainable growth.   It is one long dreary story of blown promises.

Osborne’s only fall-back, now that growth has missed the 3% target by quite a margin and is clearly fading, is the fall in unemployment.   But 40% of those ‘jobs’ come from self-employment on a pittance income, and almost none of the rest are full-time jobs at or near the average wage.    So Osborne’s only hope of keeping growth going at all now is through an increase in consumer borrowing, even though it’s already hit a record £2.6 trillion.   Despite a further 0.1% fall in real household incomes, consumer spending rose 0.9%.   This is the primrose path to perdition.

But even if the Tories are doing their best to lose the election, Labour is doing its best not to win it.   The could not be a more poignant moment, with all the economic indexes without exception in disarray, for Labour to announce that the Osborne austerity policy had manifestly failed and it was patently time for a major change in policy.   There are two ways to cut a deficit: either increase income or reduce expenditure.   Since obsessively pursuing the latter is not even now reducing the deficit, which is set to rise this year, the obvious alternative policy is to set in place sustainable expansion of our shrunken economy, bring down unemployment with real jobs, steadily increase household incomes at last, and use the higher tax take to pay down the deficit faster and more effectively.   But Labour can always be relied on to fail to rise to the occasion.   Oh for some economic leadership!



5 thoughts on “Osborne’s boastfulness comes back to haunt him

  1. Ah that recovery wasnt whot it seems its a attack on tax payers monies that allowed big companies a free hand at taking tax payers
    monies yes indeed taking it offshore leaving britain poorer in jobs and
    monies yes they even went and loaned a slave to big companies and
    those so called charitys who took a slave or two and to top it all pay
    them a profit for taking that slave would this be the up in their eyes
    it seems the tories havent told the truth or shown that being a fraudsters that robbing the poor for the rich was one big crime
    isnt it sad the poor paid this price for willfull greed of others
    we now have carney a failed banksters from canada inside the bank of England still fiddling the figures for George outside who cant even cook the books properly yes rtu ids fiddle so many figures there are
    many in ghost jobs without pay yes it was a prosperous year once again for our politicians who awarded unto themselves more monies
    than some families get to live on yes its been a tidy year for all those
    in london big city while the poor paid the price for their greed jeff3

  2. I totally agree, Millipede has failed to rise to the occasion and SHOULD BE ‘HAMMERING HOME’ week after week all these sad facts…as repetitiously as Scameron keeps repeating ‘Labour were to blame’ Until he recognises and deals with these issues decisively..I’m willing to vote, as are a growing number of disgruntled voters’ and vote Green. I like their policies..not all of them..but enough for me to say they deserve a chance..after all, they couldn’t make a bigger mess than the main 3 have in the recent past. Time for Change and a fresh feel to Democratic Policies…

  3. Steve, voting Green risks letting the Tories win, and we really, really, can’t afford to risk that happening, as they will dismantle the welfare state, privatise the NHS and introduce all sorts of other horrors that will change our society for the worse. Much of this has already happened and only Labour has a chance of stopping it. If you really must, then vote Green at the following general election, but please give Labour a chance to put things right first, before it’s too late.

    I can’t emphasise enough how crucially important it is to get the Tories out asap.

    BTW I had little interest in political matters until I realised just how much damage the Tories are doing to this once wonderful country of ours. They really MUST be stopped!

  4. Correct w l its labour but will they listen its the last chance saloon for them has the poor wont take much more of the lies and crocked ways of the politicians are they working for themselves or the people who elected them it seems that greed has thats whot its called taken over with a lot of them when this job should be their sole job isnt the open till enough has this alone leaves them richer for it yes its the last chance saloon

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