On Sunday I tweeted about a story from the New York Times published on 14th October 2011. For your reference I have included it at the end of this blog.
For quite some time now the Tories, and their “yes” men and women in the Fib Dems, have been saying that the problems we Brits face were all caused by the previous government and their spending plans. I say the Labour Government implemented investment plans because spending seems to be a dirty word in government and I believe our Labour Government invested in our education and health services now and for the future amongst many other things.
Now that this ConDem government isn’t capable of solving the financial problems we face the World Recession has become the excuse for their incompetence, as if it has suddenly arisen and wasn’t there before.
The focus of the government is on the benefits system and their obsession with lowering the income of the families and individuals who are already on low incomes, and reducing the support given for decent housing. The Social Landlords particularly will be held back from delivering more social housing because of the impact on rental income and their ability to borrow to invest. Watch for more Rachman type businesses flourishing.
On Monday evening I attended a Councillors update session on the changes to the welfare benefits system and some of the impacts this will have. Would you believe that a certain Tory actually said that the benefits system was too generous and that it needed reducing to solve the problems our country faced!! Well you would believe it wouldn’t you – they are like that.
Our local Tories in particular are in denial. They seem to have completely forgotten, or never recognised, that the taxpayer contributed to the rescue of the corrupt banking system and bankers to the tune of £Billions and that Ireland has been assisted to the tune of £Billions which we the British Taxpayers had to borrow to lend to!! It would have been better invested in our communities and manufacturing industries!
One thing I will repeat here is the fact that I still regret the Labour Governments belief that banks and the banking sector in general could be trusted to regulate themselves – something which should have been dealt with many years ago. You may have noticed that the big banks are using the same old threat of taking their business out of the country if more regulation is introduced. Take it I say, and let’s get back to manufacturing products that people want, not just rely on a system that has failed itself but that has also failed our people. Moving money about does not bring wealth to the masses it simply makes us all poorer.
From NY Times:-
“For a year now, Britain’s economy has been stuck in a vicious cycle of low growth, high unemployment and fiscal austerity. But unlike Greece, which has been forced into induced recession by misguided European Union creditors, Britain has inflicted this harmful quack cure on itself.
Austerity was a deliberate ideological choice by Prime Minister David Cameron’s ruling coalition of Conservatives and Liberal Democrats, elected 17 months ago. It has failed and can be expected to keep failing. But neither party is yet prepared to acknowledge that reality and change course.
Britain’s economy has barely grown since the budget cuts began taking effect late last year. The most recent quarterly figures showed the economy flat-lining, with growth at 0.1 percent.
New figures released this week reported Britain’s highest jobless numbers in more than 15 years. Independent analysts expect unemployment — now 8.1 percent — to keep rising in the months ahead. The government has kept its promise to slash public-sector jobs — more than 100,000 have been lost in recent months. But its deficit-reduction policies have failed to revive the business confidence that was supposed to spur private-sector hiring.
Drastic public spending cuts were the wrong deficit-reduction strategy for the weakened British economy a year ago. And they are the wrong strategy for the faltering American economy today. Britain’s unhappy experience is further evidence that radical reductions in federal spending will do little but stifle economic recovery.
A few years of robust growth would go far toward making swollen federal deficits more manageable. But slashing government spending in an already stalled economy weakens anemic demand, leading to lost output and lost tax revenues. As revenues fall, deficit reduction requires longer, deeper spending cuts. Cut too far, too fast, and the result is not a balanced budget but a lost decade of no growth. That could now happen in Britain. And if the Republicans have their way, it could also happen here.
Austerity is a political ideology masquerading as an economic policy. It rests on a myth, impervious to facts, that portrays all government spending as wasteful and harmful, and unnecessary to the recovery. The real world is a lot more complicated. America has no need to repeat Mr. Cameron’s failed experiment.”