Tag Archives: economy

Why won’t Labour tell the truth?

Why does Labour, when the Tories lie and lie and lie, keep on turning the other cheek?   Hardly out of an excess of Christian charity, more because of cowardice in failing to confront the British people with the truth.   Osborne, a snake oil salesman if ever there was one, began his time in office in 2010 by repeating over and over again that all the problems in the economy were all the fault of the previous Labour Government.   So why didn’t Labour make the obvious riposte that it was actually the bankers, whom Osborne for some reason had somehow forgotten to mention?   Why, even more worrying, has Labour failed to make even a bleep to counter these Tory lies over the whole of the last 4 years?   It would have been so easy.   The biggest budget deficit in Labour’s 11 years before the crash in 2008 was 3.3% of GDP whereas the Thatcher-Major governments racked up deficits bigger than this in 10 of their 18 years.
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Osborne’s own policies are shrinking tax revenues, yet he demands even bigger spending cuts to compensate

There are now unmistakeable signs that Osborne’s so-called economic recovery is fading, despite all the right-wing think tanks and pro-Tory media to talk it up.   A survey of 7,000 businesses by the British Chambers of Commerce has just found that manufacturers have suffered a sharp slowdown in export orders, and even more significantly domestic sales and orders – the part of manufacturing that has been faring better due to household expenditure based on rising debt – are now also reported to be slowing.   The third quarter growth figures also show the UK economy losing steam, down from ).9% in the second quarter to 0.7%.   The TUC has just reported that not since 1865-7 has there been a comparable squeeze on earnings for British workers, with an 8% fall in real earnings between 2007-14, and the fall is still continuing with the latest figures this year showing annual wage growth of 0.7% against inflation at 1.5%, i.e. a further real wage fall of 0.8%.   There is then a serious knock-on adverse effect in a reduced tax take for the government which is actually this year increasing the deficit (from the current £100bn to around £105bn) when Osborne’s whole object is ostensibly above all else to cut the deficit.   His austerity programme is now beginning to eat itself.
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