Tuesday, 27 December 2011

Reality Check

To quote George Orwell, "Who controls the past controls the future. Who controls the present controls the past."

2011 has largely dominated by the failing economy and falling living standards, yet the Labour Party had made only modest gains in the local elections and made only marginal progress in the opinion polls.

Let's be clear though, Labour has been proven right on the consequences of the coalition governments handling of the economy, yet they have not received recognition in the opinion polls when people asked on economic competence.

I am convinced without a coherent message in a language people understand, political parties has very little chance of convincing the public of their agenda, this is Labour's problem and has been for years, the political narrative.

The European fiasco before Christmas amplified Labour's problem.

David Cameron went to the European Summit to defend the interests of the City of London, he vetoed the agreement, so the Europeans decided to go on without Britain, as many financial regulation are dealt with in the single market, much of financial regulation will go on anyway.

David Cameron's message was clear "standing up for Britain", it doesn't matter he effectively did not!

Labour were seen as unclear on it's policy, seen as supporting Europe and Austerity and at home wanting a more Keynesian economic stimulus, Labour should be saying, if the Europeans want to save the Euro then they should devalued the Euro with further fiscal integration and more power to the European Central Bank.

At home Labour's economic policy is to stimulate demand that create revenue and jobs, yet the European Summit wanted to legalise Austerity.

Why would Labour want to agree with centre right political parties in Europe, when
Labour does not believe to have balanced budgets in all parts of the economic cycle, government has to spend in recession to keep the economy going, this is not my view, it is also George Osbourne's as he is going to borrow £158 billion more than he said.

Labour needs to state that we have an over reliance of the City of London and need to a switch in focus to the productive economy, this won't happen by the private sector alone, the organs of government needs to be involved.

When the coalition government cut the Jobs For a Future Scheme and cut Educational Maintenance Allowance this has led to over £1 million (20%) young people out of work, these cuts have made employment opportunities worse now we see
Labour message of the productive economy and jobs with the responsibility of government and the individual to work.

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