What would Clement do?

A Labour blog that witters on about Clement Attlee. Hurrah for The Major!

Archive for the tag “Recession”


So today Britain is officially back in recession. This is no time for shallow politicking, people have no confidence that things will get better any time soon, and millions of us are frantically chasing work. Somehow we manage to have the Olympics, a housing crisis, a major infrastructure deficit and STILL the construction sector leads the way for economic downturn.

It is time for Gideon and Dave to admit what many of us have known for some time, that Plan A is not working, that the cuts have been too far and too fast, whilst tax reductions for the super rich were simply not appropriate at this time. This Coalition is making the ordinary people of the UK pay for an economic crisis caused by unregulated finance and thirty three years of monetarist dogma. The very rich men who agreed to come together in May 2010 to restore the nation’s finances have now proved not to be the economic geniuses that they claimed to be. They pretty much look like a bunch of shysters on the make.

In Scotland, News Internationals First Minister plays fast and loose with the essential economic truth, namely that Scotland’s economy is too tied to that of Wales and England to have any chance of independent recovery. His fictional “Arc of prosperity” disappeared when Iceland and Ireland went bust, yet he is content to take the odd pot shot at the rest of us, whilst the public works north of the border are still largely funded from Whitehall. For all his bumptiousness, at least it gives us a ready made argument against the Growth Deniers – publicly funded projects can save jobs and keep mopey flowing into an economy, austerity has now been proved to do the opposite.

By contrast Ed M and Ed B (or Wallace and Gromit) are looking more credible each day. At PMQs today Ed pretty much wiped the floor with Cameron, and Balls has been slowly destroying Whyborns economic credibility for months now. It seems that Gordon Brown was right back in 2010 – it really wasn’t time for a bunch of novices.



Zombie Economics.

Back in 1980, when George Bush Snr. was competing with Ronnie Reagan for the Republican nomination, he decried dear Ronalds free market mantra as “Voodoo Economics”. Oops, as thats what we have endured, by-and-large since then, with increasing amounts of deregulation until the system crashed in 2009.

Having crashed and burned, you would think that any Government that had to get out of such a mess would think twice before repeating the old Small State Monetarist dogma...

How wrong could you possibly be? With few exceptions, under EU and IMF pressure, what we are seeing in Greece, Portugal, Ireland, Spain and in the UK is a dull, unthinking march into the future. The Chicago School hordes are ravenous for the flesh of the State, and have only one thing on their minds…

“Deficit…Deficit” they groan as they shuffle onwards, no other thought in those otherwise lifeless brainpans.

There is still hope though, and it comes in the form of the economic figures coming out of the USA, where, schooled in Zombie Movies since 1968, an Heroic Black Man is courageously, and intelligently keeping the undead  Tea Party mob at bay…

…just like Night of The Living Dead, when you think about it…

Consider this: In every country where Austerity measures have been implemented, economic conditions have got worse- economies have shrunk, wages have fallen, the cost of living has gone up, jobs have been lost and inequality is on the rise. In Ireland, emmigration, is massively on the rise – something that the “Celtic Tiger” thought was a thing of their underdeveloped past.  The only people to gain from Austerity in every case have been the Super-rich.

So, are we doing all this for the benefit of Lichtenstein?

In the United States, growth is up, unemployment is falling, and the economy is moving in the right direction.

In Austerity Britain, where the economy needs to grow by more than 3% every year until at least 2015 for Gideons plans to work, the OECD has predicted a sluggish rate of 1.5% this year, and 2% in 2012. Even I can see a problem here, one that will be made much worse by having to fork out huge amounts of unemployment benefit, and consequently take much less in tax revenues.

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