Wednesday, 5 October 2011

Paralysed by Dogma

So the Prime Minister believe that people are "paralysed by gloom and fear", I suspect Mr Cameron's speech writers would know why this is!

Mr Cameron and his friend Osbourne has misled the people on basic economic facts, deliberately confusing issues between what is "debt" and what is "deficit", clearly very clever politics talking up a none existing sovereign debt crisis, saying the UK was going bust, factually incorrect.

Then we have the Thatcherite economics of treating the economy as household accounts, this economically illiterate verbiage should be challenged, Cameron's call for credit cards to be paid off, was quickly denied, but it's the weakness of his governments thinking.

The thought anyone would buy a house on a credit card is mildly bonkers, so is cutting government spending too deep too fast, at the same time as consumer spending is in fragile state and then increasing VAT at the same as cutting corporation tax cuts for huge corporations, yet it is the small to medium businesses that need help are not getting it.

The country's biggest retailer Tesco, reported its first six-monthly decline in underlying UK sales for 20 years as Britons were forced it cut back not only on extras like clothing and household gadgets but their weekly grocery shop.

So today we have seen growth revised down to 0.1% leaving growth of 0% for the previous 9 months, we see no plan for growth and not a coherant plan, we need a more intelligent approach.

Cameron and Osbourne needs to end the dogma of Plan A, without some boosting of demand and investment in business, a double dip recession is looking likely, this without the Euro Zone developing crisis.

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