The Osborne effect: serving up a triple-dip?

An excellently succinct post on Labour List today used the depressing news of negative growth to underline the disasterous stewardship of the economy by this economy.

The latest figures show the economy has shrunk by 0.3% in the last quarter of 2012.  As we are one more quarter of negatvie growth away from experiencing the unfortunate novelty of a triple-dip recession, the Government and Chancellor’s record is stark.

To recap the Labour List analysis:

  • our economy has grown just 0.4% in more than two years
  • it has shrunk in five of the nine quarters since the Government’s 2010 spending review
  • by comparison, over the same nine quarters, the US economy has grown by more than 45 (ten times as much); Germany’s by more than 3.5% and France’s by 1.5%
  • during the Government’s first quarter in office, operating under Labour’s spending plans,  the economy grew by 0.6% – there was more growth in this one quarter than in the nine which followed the Coalition’s spending review

Now it seems no-one is in doubt that the Government’s austerity plan is failing our economy and the country.  Consider the following views (courtesy of the Independent)

“The more time that passes, the clearer it is that America’s gradual and delayed approach to  fiscal tightening is the right one” Trevor Greetham, investment group Fidelity

“It’s worse than the 1920s; it’s worse than the Great Depression,” Stephen Boyle, head of group economics, Royal Bank of Scotland

“These figures are very disappointing. If the Government does indeed have a strategy for growth, it plainly isn’t working”  Mark Littlewood, Institute of Economic Affairs

“The hair shirt stuff, the Stafford Cripps agenda – that is not the way to get Britain motoring again.” Boris Johnson, Mayor of London

When it isn’t only bankers and city analysts criticising your policy, but one of the most right-wing think tanks and your own party’s Mayor of London, it really is time for the Government to drop the dogma and pursue a plan B.

Perhaps investing for growth and jobs is worth a go.  It can’t produce worse results than we’ve had over the past couple of years.



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