The great austerity experiment is over


Tucked away on my news feed is a report of a speech made in Manchester by the architect of “austerity”, George Osborne.

For those of us who have enjoyed the prosperity that our economic recovery has brought, austerity may seem a stranger.

But for those struggling to deal with the impact of cuts on their local services and their benefits, austerity is all too real.

They will read these words with mixed emotions

In a speech (Osborne) said, given the effects of the referendum vote, the government had to be “realistic about achieving a surplus by the end of the decade”.

The target had been the chancellor’s most prized goal and had been driving austerity measures in previous budgets.

But he said the economy is showing “clear signs” of shock following the vote to leave the European Union.

“The referendum is expected to produce a significant negative economic shock to our economy. How we respond will determine the impact on jobs and growth.

“We must provide fiscal credibility, continuing to be tough on the deficit while being realistic about achieving a surplus by the end of the decade.”

There is a sub-text in this, and expect it to be played out over the next few weeks. The architecture of austerity has been undermined by the left who have sabotaged Osborne’s plans which otherwise would have brought them great benefit.

  • The poor have brought this on themselves
  • They have been allowed to do this by a supine Labour Government that did little to tell their poor what to do.
  • If only people had done as they were told, everything would have been alright.

This is more or less why Osborne and Cameron lost the referendum. They managed to so alienate a substantial proportion of the electorate that they did the opposite of what they were told.

They did so because they trusted Osborne to act in their worst interest. Far from being “One Nation”, the Conservative party has created a nation divided on almost everything.

If we are to go forward as one nation, we must rid ourselves of the toxic austerity policies and follow a path that is both fairer and more energetic. We need to be expansive and positive, not introvert and negative.

In footballing terms, we need to be Wales – not England.

About henry tapper

Founder of the Pension PlayPen,, partner of Stella, father of Olly . I am the Pension Plowman
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4 Responses to The great austerity experiment is over

  1. DaveC says:

    When the banks needed bailing out in 2008 or so, a popular phrase to describe what happened was “privatise the profit, socialise the debt”

    Once again the Bank of England has mentioned QE and stimulus packages. A full business cycle later and we’re back in the same situation.

    But thankfully this time the banks aren’t to blame. Oh no, the world was doing great until people exercised their democracy the wrong way.

    This time the banking crisis and economic fallout can have the blame lay at society’s feet…

    “privatise the profit, it was societies choice to pay the incurred debt”

    … even though they’re really just bailed out the failing banks, again…

    Every time this lunacy continues, swathes of the public lose out financially.

    This time it’ll either be pensioners seeing their money become increasingly worthless… or young people who see asset values increase yet further, despite ‘inflation’ staying flat for their salaries.

    Roll on September. I’m expecting fireworks.

  2. DaveC says:

    Excuse the few bits of bad grammar!

    Is there no way to edit posts?

  3. John Mather says:

    Robert Shrimsley makes some interesting football observations yesterday in the FT but and he says accepting the loss of the vote is not the same as accepting the exit argument (depending upon which one you pick)

    There are more clues in how to react from watching what the central banks are doing rather than listening to what they are saying

  4. henry tapper says:

    No way of editing posts I’m afraid! Typos are part of the process

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