Osbourne's Excuses

[JFKvsNixon]

It requires astonishing chutzpah to claim that the problems are now caused by external pressures while simultaneously denying that external pressures caused a lot of the issues post-2008.

 

It does not.

 

It's simple, as the previous government were responsible for how we were equipped to manage the on going crisis, something that the current government cannot be held accountable for.

[L00b]

L00b, don't get confused between what he intended and what has actually happened.

I'm not. But you seem to be

He thought that there would be a massive boost in private sector growth. It hasn't happened. It could never have happened. He only delivered half a plan. He forgot the bit about growth for 18 months despite being warned repeatedly. It's a massive blunder. No doubts about it - the AAA rating could have been maintain with a sensible programme of well targeted cuts and a programme to promote growth.

That is just hindsight speaking. He was warned by some that it could happen. He was encouraged by others that it was the right thing to do. In the end it was his call. And the race isn't run yet. Very far from it.

It's not right to argue that the preservation of the rating required us to have a flatlining economy.

I'm not arguing that at all. The flatlining economy is not according to plan (as clearly acknowleged by Osbourne himself) so I very much doubt it was intended/"required".

 

Unless you have something constructive to add (as in, more than the soundbity "a sensible programme of well targeted cuts and a programme to promote growth"), then I'll just take your (manifest) bias in the above, and preceding posts, as the political attack that it appears to be. Fair enough?

[mj.scuba]

So I'll say again because my post on this matter was deleted without aparrent reason - What will you say when Osbourne has put these crummy measures in place and interest rates, mortgages and home repossessions still go up as is inevitable?

 

See post #27.

[ElasticMan]

One big question to the cloth cappers on here!....................how the hell do you think any government could turn round this massive sinking ship in 18 months?

 

Well, Osbourne seemed happy enough to claim he had saved it after just 6 months (see first post for details)

 

In fact, it wasn't sinking when he took control. It was recovering and growing.

 

Osbourne effectively killed off consumer confidence and demand when he immediately increased VAT. This hits consumers directly at a time when pay is stagnating and jobs are being cut. It takes money out of people's pockets and kills demand and adds to inflation. It hits those who can least afford it most.

It was the single most destructive act he could have done.

 

The increase in the deficit was caused by the sudden rapid drop in tax income that followed the credit crunch in 2007. It was not caused by excessive public spending (which is why the Tories pledged to match Labour spending as recently as 2009).

[ElasticMan]

Will have to see what the circumstances are if/when it happens, it would be stupid to say otherwise.

 

Not as stupid as claiming, in October of last year, that his policies had put the economy 'back on track'.

 

In fact, the growth we saw late last year was the result of Labour investment - Osbourne has succeeded only in killing that growth.

[mossdog]

Well, Osbourne seemed happy enough to claim he had saved it after just 6 months (see first post for details)

 

In fact, it wasn't sinking when he took control. It was recovering and growing.

 

Osbourne effectively killed off consumer confidence and demand when he immediately increased VAT. This hits consumers directly at a time when pay is stagnating and jobs are being cut. It takes money out of people's pockets and kills demand and adds to inflation. It hits those who can least afford it most.

It was the single most destructive act he could have done.

 

The increase in the deficit was caused by the sudden rapid drop in tax income that followed the credit crunch in 2007. It was not caused by excessive public spending (which is why the Tories pledged to match Labour spending as recently as 2009).

"Osbourne effectively killed off consumer confidence and demand when he immediately increased VAT."

Largely irrelevant really.Most retail sellers discounted the VAT increase to the customer.............so that was not the reason for lack of consumer confidence!

[WeX]

A year ago the interest rates the UK paid on bonds was above that of Italy's. Today we pay the same as Germany, while Italy is close to bankruptcy.

 

Hate this government as much as you like, but if Labour had stayed in power and kept to their policy of borrowing more and more and not reducing the debt (they only agreed to reduce the deficit by a small amount in 4 years not the debt), the UK could have been in the same place as Ireland, Italy and now Spain. Countries that followed similar policies as Gordon Brown's Labour party. Even Miliband has started to agree that the debt is the problem and needs a faster resolution than labour ever envisaged.

 

I dont like everything this government has done or is doing, but out of a bad bunch, they are the best choice.

[I1L2T3]

It does not.

 

It's simple, as the previous government were responsible for how we were equipped to manage the on going crisis, something that the current government cannot be held accountable for.

 

No matter how you want to dress it up the cause of the 2008 crisis was external. And in opposition the Tories pledged to match Labour spending plans even into 2009 anyway. 2008 was not a crisis that was unique to or limited to Britain.

[I1L2T3]

I'm not. But you seem to be

That is just hindsight speaking. He was warned by some that it could happen. He was encouraged by others that it was the right thing to do. In the end it was his call. And the race isn't run yet. Very far from it.

I'm not arguing that at all. The flatlining economy is not according to plan (as clearly acknowleged by Osbourne himself) so I very much doubt it was intended/"required".

 

Unless you have something constructive to add (as in, more than the soundbity "a sensible programme of well targeted cuts and a programme to promote growth"), then I'll just take your (manifest) bias in the above, and preceding posts, as the political attack that it appears to be. Fair enough?

 

It's not hindsight unfortunately. Osborne was warned repeatedly that he needed a plan for growth too. He said he didn't need one. Now he realises he does.

 

"a sensible programme of well targeted cuts and a programme to promote growth" is not a soundbite. It's exactly what we need - public sector efficiencies and economic growth.

[I1L2T3]

A year ago the interest rates the UK paid on bonds was above that of Italy's. Today we pay the same as Germany, while Italy is close to bankruptcy.

 

Hate this government as much as you like, but if Labour had stayed in power and kept to their policy of borrowing more and more and not reducing the debt (they only agreed to reduce the deficit by a small amount in 4 years not the debt), the UK could have been in the same place as Ireland, Italy and now Spain. Countries that followed similar policies as Gordon Brown's Labour party. Even Miliband has started to agree that the debt is the problem and needs a faster resolution than labour ever envisaged.

 

I dont like everything this government has done or is doing, but out of a bad bunch, they are the best choice.

 

Ireland actually did the opposite to spending - it went into the mother of all austerity drives.