austerity, benefit, claimant, cycle, death, economic, economy, fiscal, George Osborne, growth, help to buy, housing bubble, Iain Duncan Smith, inflation, keynes, long term, manipulate, manipulating, manipulation, Media, Mike Sivier, mikesivier, plan, purge, recovery, stagnation, stimulus, UK, unemployment, Vox Political, wage
George Osborne is flailing.
He’s a desperate man, trying vainly to convince us that the current state of the British economy was his plan all along when anybody with half a brain can see it wasn’t.
Yesterday he was in Washington, trying to convince Americans that he knows what he is doing, but US economists are far too canny to accept anything he says at face value.
His principal claim was that critics of what he and the ConDem inner circle still laughably call “the government’s long-term economic plan” have been proved “comprehensively wrong”. Some of us would like to see his proof of that.
Back in 2010, when Osborne took over at the Treasury, trashed a perfectly good Labour-stimulated recovery and sent the economy into freefall, those of us with any sense said the situation would worsen until it hit the point at which the economy would stabilise of its own accord, without any interference from politicians. Then it would start to improve because demand would start to rise again.
We reached the lowest point possible in the British economic cycle; from there, the only way was up. That is why there is a recovery – and a mean, meagre little thing it is, too. We should be 20-25 percentage points above where we are. Instead, we’re 1.4 per cent behind our pre-recession peak and the money is going to the wrong people.
The only question you should be asking is why this Tory illiterate has held us back.
Osborne told America that the British economy was growing faster than any other in the G7 – which means nothing. When an economy has shrunk more than any other, it is easier for it to grow. It doesn’t mean that our economy will be bigger than the others, although that is certainly the impression that Osborne wants to convey.
He said the growth was “despite warnings from some that our determined pursuit of our economic plan made that [economic growth] impossible”. This was a lie.
Osborne knows perfectly well that nobody said growth was impossible. They said Osborne’s policy would delay any recovery, causing misery for millions of medium- and low-waged people and providing a spurious justification for his colleague Iain Duncan Smith’s purges of benefit claimants – actions that have caused many thousands of unnecessary deaths.
Apparently, to quote members of a previous Tory government, that is “a price worth paying”. For what?
He said: “Fiscal consolidation [austerity] and economic recovery go together, and [the economic turnaround in the UK] undermines the pessimistic prognosis that only further fiscal stimulus can drive sustainable growth.” This is not what the data shows. It shows, as already stated, that the British economy hit rock-bottom under Osborne’s guidance and has now started the long climb upward of its own accord. That is not an endorsement of his policy; fiscal stimulus along Keynesian lines would have arrested the decline and boosted the economy back into growth – as evidenced four years ago, when Osborne inherited an economy that had been growing for five consecutive quarters and sent it right back into decline.
Osborne claimed, yet again, that a Keynesian scheme would create more debt – denying the simple economic fact that the boost it would have provided would have put more money into the Treasury and cancelled the debt far more quickly than his cuts.
It’s obvious, really. Any growth is despite austerity, not because of it. If you take money out of a system, it’s harder for anybody to make a profit on which tax can be paid. Economics 101, George. But you studied history, didn’t you? And towel-folding.
We should also remember that in Osborne’s first Budget he promised – promised – a “steady and sustained” economic recovery. Instead, we had three years in which the economy flatlined. Then he brought in ‘Help to Buy’ – a very crude fiscal stimulus scheme that has created a housing price bubble that is hugely damaging for low earners while putting money into the pockets of people who don’t need it. The economy picked up, because housing relies on other industries, but the crash that is to come might create a worse situation than before.
Osborne wants us to believe that wages will start to rise above inflation, even though the experience of the Americans to whom he delivered his speech is that 95 per cent of post-recession growth went to the richest one per cent of the population. He wants us to believe living standards will improve, but there is no evidence for this at all.
It’s all just another big lie.
Just take a look around you and you’ll see the facts. Osborne was charged with keeping the economy on its knees because that is what the Tories needed, in order to suck the cash from the middle-class, working-class and unemployed people of the UK.
Tories need mass unemployment to maintain the UK as a low-wage economy, creating more profit for bosses while keeping the workers under the cosh.
They need stagnation in much of the economy in order to ensure that the deficit does not go away and the national debt rises, thereby making it possible from them to continue selling off the National Health Service and dismantling the welfare state.
They need a housing bubble in places like London, to ensure that it is too expensive for undesirable poor and middle-income people, ship them out to other towns that have suffered the planned decimation of their economic bases (in order to ensure that they could not make a better living there), and make the capital city a playground for the rich.
And they have done it all by manipulating the media into telling you the worst lies about your own well-being – lies like those in George Osborne’s speech yesterday.
The last 40 years of British history represent the worst decline in living standards for the British people in the entire history of our nation. Never before did we have as much as when the Conservatives came to office in 1979; never before did we have so much to lose.
And we gave it away to liars like George Osborne, just because they had honey on their forked tongues.
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Pingback: If Osborne's critics are wrong, why did the eco...
Reblogged this on MAL's MURMURINGS.
Reblogged this on Jay's Journal and commented:
He wouldn’t know a recovery for the UK if it jumped up and hit him in the face. He has ruined this country!
Reblogged this on sdbast.
Pingback: If Osborne’s critics are wrong, why did the economy do exactly what we said? | psychjim's Blog
Reblogged this on Beastrabban’s Weblog.
Jeffrey Davies said:
well with his mate carney in the bank whot else does one think would happen they fiddle they lie but then did you expect any more
Reblogged this on amnesiaclinic and commented:
Excellent analysis in language we can understand! Sadly, not enough people realise the damage this financially illiterate man is doing.
The Labour Party claimed that Osborne’s policies would create millions of unemployed and we would have a triple dip recession. We did not even have a double dip recession. The country is now in a better shape than it was under Blair/Brown. It is quite clear that most people think that Miliband is a buffoon.
Mike Sivier said:
We avoided double-dip because economic growth in one quarter was revised from a minus figure to zero, and you expect us to break out the champagne?
The economy is performing at 1.4 per cent BELOW pre-crash levels and any benefit from the current (alleged) recovery is going to the wrong people.
People are welcome to their opinions of Ed Miliband but we all know that Cameron and his cronies are all in this for themselves. They sold a fat lie about the national interest and then stuck their snouts as deep into the trough as they possible could and started sucking the life out of this country.
To find out where they get their ideas and how bad things are likely to get for Britain if they remain, Google, ‘The Impact of Thatcherism on Health and Well-Being in Britain’, read the article and learn something.
jeffrey davies said:
you hadn’t done much reading on blair and brown then their way was helping Britain back geogie boy with his mate carney have fiddled the figures again and again look about there that main 99percent not spending much only the 1percent who are buying highend cars which that 99percent cant buy even true tories new blair being a tory was doing ok with brown but nothing from these clowns read about how Britain was to climb out but now recides back down those fiddled figures jeff3
jeffrey davies said:
has for working look at the charitys ask how many are hiding those stacking shelves yes more hiden figures nay they lied they screwed you