Wednesday, 5 December 2012

Her Majesty's Opposition - The BBC



Making a mash of the numbers.  Stephanie Flanders is fast becoming the only serious opposition the government have in economic policy, Ed Balls is a spent force and RedEd has nothing new to say.

Her main tactic is to cloud the issues with convenient statistics - (just to remind everyone her job is to clarify the situation for the licence paying public not just make things look as bad a s possible).

She keeps the focus on the deficit as a % of GDP and whilst the UK is borrowing less than in 2010-11 Steph tells us, austerity so far has still only reduced the deficit by 0.5% of GDP to  4.3% of GDP.  The important number is the £59bn reduction in spending and the fact that the annual deficit has been cut by a quarter.

I would have thought its obvious that if you cut govt expenditure you have to grow the private sector by the same amount to stand still (Govt spending is 50%+ OF OUR ECONOMY) - so in a low growth economy where there is no inflation the % of GDP deficit reduction is going to be very small. 

The government were silly to think that they could grow at 2% whilst cutting gov spending at 3% annually - and Steph is making them pay. 

Her slot on the News at 10 tonight was a low point in biased reporting!

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