As Bill Clinton was fond of saying ‘it’s the economy stupid’. And if you are still breathing after the last seven years of austerity and recession there is, with the possible exception of England’s Rugby team performance in the Six Nations, nothing important. This blog is an attempt at a ‘digest’ – pulling together the blogs I have posted the economy over the last month.
The backdrop is well known, the Tory led coalition in the UK have been trying to get us out of the fiscal hole left by the last government and the global credit crisis. After 3 years of pain and little progress we are now at the tipping point, do we continue as we are with more fiscal austerity (spending cuts and tax increases) off set by quantitative easing (asset purchases) or do we do something different. The consensus is that we should change direction the argument is over whether to turn left or right. The Government, that I try to support, is dithering about in the middle tinkering with all the levers at once.
I have been concerned with three themes all of which overlap. Firstly I have been preoccupied with the incompetence of our government and specifically the Chancellor, Secondly I have been concerned with policies that penalise savers over borrowers and finally I have been trying to find a way out that would see the Tories re-elected. So here are the posts
I kicked off with a piece castigating the policy of QE (like pouring more water over a drowning man) which penalises well run businesses by preserving fag-end companies that would go under if interest rates were set at realistic levels. It also kills the return on savings, reducing consumer expenditure and killing growth.http://getwd50.blogspot.com/2013/01/were-all-zombies-now.html
I got mad one evening and blasted off on eight things the Government could do now to improve things. My first suggestion was easy - remove George Osborne, which is pretty obvious, the one’s that followed became increasingly strange as the whisky bottle was drained.http://getwd50.blogspot.com/2013/01/free-advice.html
The next one has more on Zombie companies – this time backed-up with some useful statistics on the scale of the problem.http://getwd50.blogspot.com/2013/01/and-answer-is.html
Finally I lost the plot with George Osborne completely taking a very personal swipe at his inability to run the country’s finances and his love of esoteric ‘middlewear’http://getwd50.blogspot.com/2013/02/cummerbund-economics.html
A suggestion for David Cameron on the sort of bribe he might like offer his loyal hard working supporters.http://getwd50.blogspot.com/2013/03/a-polite-bribe.html