It’s the economy, stupid (Part 2)
Today, the Cameron Experiment ended.
For three years, in a haphazard and incosistent manner, PBD’s been trying to convince us that his NuTories were different from the rabid right-wing Conservative options served up at the 2001 and 2005 General Elections.
Until today PBD’s NuTories - if you’ve believed the hype - have been green, caring, touchy, feely, concerned about “society” (which therefore may actually exist after all) and generally bloody good chaps.
Today, with PBD’s poll lead all but wiped out and - unbelievably - no evidence of anybody having the cojones to put Arrivederci Gordon out of his misery, NuTories became SameOldTories.
Today, PBD stood in front of a bunch of economic wonks and did a Geoffrey Howe:
The first step is to set realistic targets for public spending.
It’s simple. Borrowing is now going beyond acceptable limits. Taxes are already too high – and Labour’s plans for even more taxes will act as a drag anchor on recovery. They’ll put people off from investing here and help to destroy jobs not create them.
So the choice is clear, and it’s a tough one – we need to restrain public spending…
So I can announce today that in order to keep spending at a responsible level and to ensure the quickest possible end to the recession and the strongest possible recovery, we will not match Labour’s new spending plans for 2010 and beyond…
But setting tough targets for public spending is only the first step.
The next step is showing how we will meet those targets and that requires a credible long-term plan. A credible long-term plan for controlling public spending has three components.
First, reducing the demands on the state by fixing our broken society.
Second, increasing the productivity of the state by reforming our public services.
And third cutting Government waste.
Even the Economics Editor of The Daily Telegraph can’t hide his opprobrium.
It was the 31st President of the Untied States of Yankee Doodle, Herbert Hoover, who first fucked up a modern recession when he raised taxes and cut spending with the Revenue Act of 1932 in response to the recession that folllowed the 1929 stock market crash. This led to a decade-long global slump called the Great Depression which saw American unemployment rates hit 25% and was only truly reversed by a worldwide war.
Forty years of economic orthodoxy followed - the way to handle a recession is to borrow a bit more, spend a bit more and cut taxes a bit. That way a recession does not become a depression.
Fuck that, thought That Bloody Woman, as she sent Geoffrey Howe in to bat in 1981 with instructions - despite double-digit inflation, spiralling unemployment and plummeting economic output - to slash the Public Sector Borrowing Requirement.
The ever-affable Howe duly obliged - spanking the poor bastards already struggling to pay their rent with a freeze on income tax personal allowances (at a time of 13% inflation), increases in VAT and excise duties and big public expenditure cuts.
Jim Prior got a bit huffy but wasn’t pissed off enough actually to be arsed enough to resign from the Cabinet. A couple of Tory MPs joined the SDP.
364 economists wrote to The Times to point out that this was, er, fucking stupid and that it would make the recession become a depression. 364 economists were told to fuck off because That Bloody Woman knew best.
Cue panic on the streets of London, Birmingham, Liverpool, Bristol and pretty much everywhere else; more than 3½ million unemployed; the systematic destruction of British manufacturing.
That depression lasted five years.
And most people with half-an-inch of brain now accept that Howe probably did go a bit over the top.
Stephen Nickell, now a member of the Bank of England Monetary Policy Committee, still thinks that the budget was over the top, and that it did deepen the recession, because unemployment continued to rise for several years afterwards.
So, having no concept of history or ability to learn from past mistakes, PBD has now abandoned all pretence of seeking to reposition the Conservative Party and decided that he’s going to repeat the mistakes of Hoover, Hilda and Howe.
He’s not going to cut taxes, he’s going to cut public spending and he’s going to shrink the state. In the middle of a recession.
It didn’t work last time.
It won’t work this time.
But at least we’ve now learnt PBD’s true colours. After three years the mask has come off.
Vote PBD, get more Thatcherism.
Arrivederci Gordon’s Christmas has come early.
But the rest of us should be working out if we’ve got enough points to be able to emigrate to Australasia…
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