Sunday, July 20, 2008

Gordon Brown is an economic disaster.

I'm not an economist, except in the sense that I have run a small business. Still do. But I do know that you can only spend money that you earn, or are given, or that you borrow. And if you spend too much, you have to borrow too much, and when the borrower doesn't think you will be able to repay, you are in big financial trouble. Now I concede that running an entire country is probably a tad more complex, but the same basic principles apply. And its becoming clear that the current Labour Government is borrowing far too much - probably between £100,000,000,000 and £200,000,000,000 per annum too much. And we're not even in recession yet. Importantly, we have stopped believing what Gordon Brown, our Prime Minister is telling us. We think he has destroyed the British economy by his ideological obsession that it is only the state, through more public spending that can respond to every challenge. For a decade, he conned us into believing that he knew what he was doing. He even conned himself. In the beginning he acted responsibly, but in the end, he's wrecked the British economy. And there is going to be a very high price to be paid, mostly by the less well off. Gordon Brown has turned out to be another Denis Healey.

And then we have the spectacle of Nick Clegg, leader of the Liberal Democrats, announcing that his party's manifesto at the next election is going to promise a reduction in the overall tax take. No matter what depth of crisis the British economy has plumbed, no matter how eye-wateringly large is the budget deficit, Nick Clegg has said he intends to cut the tax burden. You believe that if you want to. I'd rather buy a car from Arthur Daley.

And what do the BBC do - or at least Andrew Marr. They take Clegg seriously. And they make a song and dance about David Cameron's refusal to act in the same irresponsible make-believe way. Even Brown's Ministers realise the game is up - James Purnell has realised that the Prime Minister is a busted flush, and has started talking some sense. As William Rees-Mogg says in today's Mail on Sunday, Cameron is now the only man who has the integrity to turn around the Gordon Brown inspired economic disaster. And Rees-Mogg is an economist.


Anonymous said...

Concur with you 100% Glyn.

As you point out Gordon Brown was stoking up the destruction of the British economy while at #11.

Brown promoted a rapid rise in house prices to cover his over spending on public projects. But as 'you sow so shall you reap' and now the UK is reaping the harvest sowed by Gordon Brown.

Wales though has a way out, but the powers that be at the National Assembly are clearly not listening ... it's 'party politics as usual'.

We need as a nation to come together as if we were at war against a major adversary - "truth be known" we are.

penlan said...

I think that you're a bit unkind to Denis Healey,who at least had the excuse of being in office throughout the oil shock and far worse financial turbulence,both globally and as a result of the ill-timed Barber boom domestically.Brown,in contrast,has had the most benign economic conditions to deal with in decades but has still managed heroically to louse it up.

Glyn Davies said...

penlan - you are right. Gordon Brown had the benefit of following Ken Carke, whose stint as Chancellor is highly regarded, while Denis Healey followed Tony Barber, whose stint is not so well regarded.