: Mon Jun 08, 2009 6:04 pm
debaser wrote:
It bugs me this, how exactly is the world economy Brown's fault? How is the corruption of MPs (from ALL parties) Brown's fault?
The tories are laughing, they would have been in exactly the same mess had they been in power, yet everyone blames Labour.
The main reason we are in this mess - affected worse than most - is because over years of a so-called economic boom we failed to set anything aside for a rainy day - and especially to pay down debt. Individually, corporately and - most relevant to this point - governmentally. Instead, Brown went on a public spending binge which led to INCREASED borrowing in a time when borrowing should by all normal rules have been significantly reduced. Had it have been, and had Brown's policies as chancellor not encouraged increasing borrowing across the whole economy, we would have been far better-placed to weather this severe recession than we actually are.
Would the Tories have been in the same mess? Well, after the 1992/93 recession Ken Clarke increased taxes and reduced spending, and as a result the levels of borrowing and the budget deficit reduced dramatically. This meant a dramatically improved and improving economic situation was bequeathed to the incoming labour government. Brown won plaudits during their first term - by sticking to the Tories' spending plans! And guess what? Borrowing and the budget situation further improved. Unfortunately he then blew it by letting public spending rip in the second term and thereafter, and it was that that has meant we entered this severe recession far worse-placed than we should have been.
Its probably academic to wonder how different the Tories would have been, because they were a tired government well past their sell-by date and increasingly losing their legitimacy and moral authority. Clarke proved an exception in an increasingly-mediocre administration.
But yes I blame Labour, and so I expect will history, for the reasons I have said and a good few others too. And the Tories are definitely NOT laughing, cos whoever wins the next election will HAVE to increase taxes AND absolutely hammer public spending and the public sector generally. Everyone knows it; few beyond the likes of Vince Cable will admit it. Talk about a poisoned chalice? The most likely outcome right now is that the Tories will indeed win, will try and fix the mess (a year later than its should be) and become so unpopular for doing so that they will be ejected at the next election. Indeed, this on a lesser scale is what happened in 1997.
Macca would deal with the economic crisis with ease by pumping money into OSV 
