No, Mr Osborne, it’s not party time yet

July 27, 2014

Britain’s economic ‘recovery’ is the second slowest in all of the G7, and performance is still far behind the likes of Canada and the USA.

Look at Britain’s performance from 2010 to early-2013. It practically flatlines for that entire period – the first three years of Austerity.

The economy only started to move upwards when the Government announced the schedule for its “Help-To-Buy” scheme, a scheme that drove up house prices, and made lending with houses as collateral more appealing to banks. So lending started to increase again, which meant that there was more money in circulation once more, and so sales began to improve.

And the Help-To-Buy is a Government spending program – the *antithesis* of an Austerity program.

Austerity doesn’t work. Government investment does. But the Tories will never admit that the only positive economic policy they have implemented is an investment, rather than a cut. (This is not to say it’s a good policy. It isn’t as it only re-stimulated the economy by using still *more* private debt, which is likely to increase long-term hardship for borrowers still further, and that will cause another crash in the not-too-distant future, but at least it has woken things up a bit.)

Politics and Insights

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Whilst official figures show that the economic depression has ended, we need to be mindful of what the headlines have not mentioned – much damage has been done by the government’s austerity measures, such as the cuts and closures to our public services, and the wasteful and costly privatisations. The economic downturn may be temporary but it seems that the cuts and the consequences are permanent.
Growing poverty reflects a large-scale economic failure, regardless of the pitifully thin distillation of Tory evidence of “recovery” and “growth” which is mostly localised to a handful of millionaires. Poverty is about the loss of much more than money. Poverty entails indignity and humiliation and exclusion. For a so-called first world democracy to treat its most vulnerable citizens so callously ought to be a source of utter shame. Austerity is an attempt to disguise the fact that the Tories are not “paying down the debt” as claimed:…

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