Cameron’s economic madness….
David Cameron has committed himself to ‘cutting the defecit’ even if the UK relapses back into recession according to comments he made in an interview with Channel 4 News. His remarks make it quite plain that the committment to ‘cutting the defecit’ is ideological in its origin not motivated by practical economic concerns at all.
No doubt the readers of the likes of Conservative Home will be pleased but it seems that Cameron & Co are having trouble convincing business leaders in Davos with the likes of George Soros warning of the clear and present danger of a ‘double-dip’ recession.
Cameron’s rather nonsensical hope is that cutting the deficit will spur growth.Popularist suport for curbs on the banks will not answer the question of how a Conservative government will grow Britain’s economy. It is on this territory that Labour should take the Conservatives on however, Alistair Darling is wrongly making the contrast as being between cuts tomorrow or cuts the day after tomorrow.
Steve Richards, writing in The Independent, rightly points out that Darling is zealously committed to the hair-shirted competition to see who can cut the most;
Since his meeting with Brown on the afternoon of the attempted coup he has behaved like a liberated prisoner, talking about cuts in a way that makes Osborne seem like a reckless spender.
However, the entire Labour leadership in one way or another accepts this orthodoxy and paradoxically contributes to the inability of the party to present a game-changing narrative. To make this election one of complete contrast the talk has to be of investment for growth and the tackling of inequality as being the main motivator of this growth. Cutting the deficit can and must wait until the economy can stand on its own two-feet and we are a long way off that happening yet….