Monday, 28 September 2015

Osbornism isn't working

With Labour in the throes of developing new policies and the media assuring us that Labour can't win with Jeremy as leader we're all forgetting that oppositions don't win elections,governments lose and they lose because of economic failures.Bad for the country. Good for opposition because of the desire for change it produces.

So we can take hope from the fact that Osborne's economics cant work. He's a neo liberal who believes in cutting back the state and cutting public spending to give more to the rich. But that can only work if the non state economy flourishes and grows.If it doesn't he'll have to impose still more cuts in a permanent wind down.

Which is why he'll fail not only because the real economy isn't picking up in the way he needs but also because the state and the non state economy need to grow together the one improving and sustaining the other.

Despite the boasts about the "long term economic plan" the present recovery is largely due to the Bank of England keeping interest rates right down and printing 375 billion of QE. Its very fragile being based on ever rising asset prices , debt, low pay and lots more struggling  self-employed.Finance and the banks haven't been adequately reformed so another debt crunch is possible. Manufacturing has continued to shrink a decline which is now becoming a rout with the steel closures and exports falling because of the overvalued pound so the trade deficit has widened and the public sector debt has risen.Unemployment,still far too high is rising again the deficit won't be closed  and the makers won't march.

Redcar steel is the symbol of all that,an early warning that  Osbornomics aint going to work, the promises of good times and tax cuts cant be fulfilled and he's going to have to pinch a lot of Corbynomics  (which he's quite capable of doing) if he's going to avoid  the kind of economic failure which will bring Labour to power 

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