Thursday, 4 August 2011
We need Growth
Today's gloom cannot be blamed on the weather. The realisation of the risk of a double dip recession in the US and the relentless creep of the euro disaster from the periphery to the centre which resulted in the significant drop in the various share indices across the world is the culprit. It is always thought that nothing happens in August because the rainmakers are say on holiday but sadly that is an illusion - horrible things often begin in August and this year looks like being no exception. How exactly is this mess going to play itself out? How are we going to promote growth? Surely we have to reduce taxes and national insurance as we should have done last year. Surely we should at the very least postpone the hideous cost of the green energy policies. We will also have to make some real cuts in the public sector. As John Redwood says we should have stopped taking on new staff so that the total number employed in the public sector would reduce over time through retirement and resignations happening in the ordinary course of events. As he says one would only need to replace those working on the front line like doctors and nurses. The Treasury I'm sure will be looking at all of this intently and hopefully taking note of and consulting with those who write for the Adam Smith Institute, Taxpayers' Alliance and similar blogs. I respect George Osborne's intelligence and the way he has handled the economy thus far but does he have the ability to ensure that we don't get landed in a depression? He needs to go hell for leather to get growth and to have the spine to ignore the siren calls of idiots like Ed Balls - one of the main reasons we are in this deep hole.
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