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….


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About darrellgoodliffe


2 responses to “Cameron’s economic madness….”

  1. mommsen says :

    In America they say: “Great minds think alike.” Maybe so. Obviously, the same is not always true with regard to the leading politicians of Europe’s major centre-right parties.

    We only have to compare Mr. Cameron’s Davos speech with the speech held by Mr. Sarkozy in Davos.

    In Davos Mr. Sarkozy said this week that globalization had gone out of control and that therefore it was necessary to rethink the capitalist system. He also called for a “revolution” in international regulation. With regard to the financial industry, he said that bonuses should be denied to those who destroy wealth and jobs. After the speech, CNN’s Richard Quest said about Mr. Sarkozy: “”He’s throwing down a gauntlet”.

    So it was no surprise for me to read on the New York Times’ website that “Mr. Sarkozy’s speech found few supporters among bankers and executives”. The French magazine “Marianne” even says on its website that half of the audience in Davos had refused to applaud at the end of Mr. Sarkozy’s speech.

    I guess that meanwhile even the staff which is responsible for the French president’s website has been able to notice that bankers and executives were not exactly amused while listening to Mr. Sarkozy’s speech. At least I know for sure that Mr. Sarkozy’s speech has suddenly disappeared from the Elysée’s website. However, I was still able to watch it there on Wednesday night.

    Why has the speech disappeared from the French president’s website within only two days? Was Harold Wilson wrong when he said: “A week is a long time in politics”?

    Perhaps he should have said: “Two days are a long time in politics”.

    A radical speech held by one of Europe’s most powerful men can simply disappear within two days from his own website.

    All I want to say now is this: Don’t be afraid Mr. Cameron. You won’t have to hide what you’ve said in Davos. I’m pretty sure that your speech was very well received by bankers and executives.


  2. darrellgoodliffe says :


    Thanks for the comment. Interesting to note though that Cameron seems to have toned-down his cutting mania in his speech today.


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