Dawndonnaagain ….. re your “Osbourne gets it wrong, again” link, which shows economic ignorance on a fairly grand scale, some of which was repeated by Mr Balls the other day when the GDP and IMF forecast came out. Btw is there any chance of you making your own points, rather than just attach a link of gloop?
Why did the UK recovery take so long?
Tell Mr 'PPE' Balls who said the same and compared the UK to the U.S. the following;
The size/depth of the GDP/Output fall, directly corresponds to the time it takes to recover and if memory serves Labour oversaw a 7.2% GDP FALL, the U.S. around 5.2% GDP fall. Furthermore, the U.S. who had NOT seen a massive unbalancing of their economy for the previous several years (where as mentioned in a previous post on here, a huge increase in government spending/debt on the Public Sector was being supported by the tax receipts of City speculation, excessive bank lending, that collapsed = huge budget deficit) Bush/Obama were both able to give massive direct tax cuts/help and other stimulus to citizens and business.
The UK had IT'S massive government spending splurge/stimulus prior to the financial/economic crash, when other countries were reducing debt, so we were basically out of stimulus ammo, other than keep the FAT government spending going.
_So Labour what did Labour do to rebalance and grow the UK economy in the 2-years after the recession;) they kept over spending on their fat Quango government, lowered for a year or so VAT and gave tax funded discounts to citizens on mainly foreign owned cars via ‘cash for old clunkers’, took away the 10p tax rate and hiked up National Insurance and Fuel Duty - which was ‘short term’, ineffectual and counterproductive to UK jobs - Osborne reversed them and put in serious measure to stimulate the Private Sector.
“Labour's planned National Insurance increase will cost jobs, Alistair Darling admits”
(2010) “Labour’s plans to increase national insurance next year will cost jobs, Alistair Darling has said.”
www.telegraph.co.uk/news/politics/labour/7539343/Labours-planned-National-Insurance-increase-will-cost-jobs-Alistair-Darling-admits.html
“In his evidence, Mr Darling defended his plans to increase national insurance, saying it was necessary to raise extra money to reduce Government borrowing, which will be £167 billion this year.”
Labour when unbalancing the economy, saw manufacturing fall from around 22% of our economy (roughly constant under the Conservatives from the early 1980’s to 1997) to 12% by 2010, LOSING 1 million manufacturing jobs in the 7-years to 2005, and two years before the crash and during a global boom, which is pretty incompetent by any government’s standards when money to help was blown on Quangos– and explains why, with all that Labour damage to industry, MANUFACTURING has been slow to recover in jobs/output, and via exports, help lower the UK’s trade balance.
www.independent.co.uk/news/business/news/million-factory-jobs-lost-under-labour-6150418.html
Finally re ‘worst recession and recovery for many decades’, the (now) UK Depression that started in 2008, is similar to the one near 100-years ago after the Wall Street crash in the late 1920’s, AS THEY BOTH FOLLOWED A FINANCIAL CRASH, which affects country finances and severely interferes with the banks and capital markets TRANSMISSION of money/capital for businesses to use to cover their CURRENT overheads, never mind invest/employ when their confidence returns.
If people (or politicians) who utter such economic ‘cods’ without reference to Labour’s economic damage, no doubt for political reasons, REALLY can’t see the interest rate difference between now and all recessions since the last financially led one – where instead of the usual governments/central banks forcing UP interest rate as a trigger to slow inflation and the recovery starts when rates lower, THIS TIME our Base Rate is at a 300-year low to try help trigger economic growth – then best they keep their gobs shut. IMO.
We have already shown that due to what economic, budget deficit and social mess Labour handed over, the National Debt figure will be higher under the Conservatives, but if I’ve missed anything else from your link, let me know and I’ll try and clear it up for you.