It is Obvious

Chris Rick has got altogether too much to say

What now?

Posted by chrisrick13 on March 24, 2013

It is obvious: it is time for bold action.

The OBR has UK debt going up to ‘crash’ levels before the election.  Have you heard anyone mention Tory cuts for a while?  That shut Labour up, at least on that one.  However the OBR is in a parallel universe to ours.  I read today a comment on their numbers with the throwaway line that nobody believes them.  So we have debt going to a disastrous level by the OBR’s numbers which include GDP growth of at least twice and probably four times that which every independent observer forecasts.

Already it seems that the disaster of Labour economic policy over 13 years has been forgotten.  Now the Conservative party are to blame for all our troubles.  By that token Labour have miscalculated.  They will return to power in 2015 if not sooner…and it will be too soon.  I think that the Coalition might well be able to avoid apocalypse and leave it to Labour in 2015.  I wonder if Mr Milliband is ready for his place in history?

Growth is the word.  All who use it are right.  They are right in the sense that it is the only thing that could get us out of trouble.  Were we to do it, which we won’t, then I am sure the party in power would not pay down debt but instead use it to achieve…more growth for a better future a few more years away.  Bah!

Who creates growth?  You and I do.  Governments do not.  The best they can do is to create the conditions where you and I might be inclined to get of our backsides and grow something.  There is one problem with this – it takes time.  It is all very well training 100,000 apprentices or giving tax breaks to start-up companies the resultant growth does not come for many years.  Even were they in place now, any useful measures that the government might come up with will not affect growth until 2020 and beyond.

If you are old enough you might remember on the news every Friday night (it seemed) there were the numbers for balance of trade with shock and horror as it vacillated and oscillated within a few millions of zero.

United Kingdom Balance of Trade

 

It is obvious: it is time for bold action – that rules me out.

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