UK ECONOMY NOT WORKING - Who should take the blame?

One year ago Chancellor George Osborne said “we have a plan for the economy.” The plan involved billions in cuts on spending, mainly in the public sector, on welfare, social housing, local Council spending and many other areas. (The austerity measures are the direct result of the Council having to find 100 million of savings over four years)
These cuts we are told are vital to reduce debt and get the economy moving again.

Economies all over the world rely on spending to drive an increase in GDP (Gross domestic product) The UK jobless total is the highest for 17 years, growth is so small it has almost stalled into a recession.
Cuts in public spending stop consumers spending, which then hits jobs and damages business. People fear for their jobs, stop spending, and we have this vicious spiral of despair.

Cameron, Osborne and Clegg have consistently blamed the previous Government but their own policies are not working. Inflation is up higher than ever, driven by higher energy prices, petrol and food price increases. Growth is lower, not Labour’s fault, add to this the Government‘s own income is suffering from lower Corporation Tax and lower Income Tax. Europe is in crisis and although Britain is not part of the Euro we are Europe’s biggest trading partner. The UK jobless total is the highest for 17 years, but redundant workers don’t help the economy, they don’t pay tax but claim benefit.

So what can be done? Instead of giving money to the bankers why don’t the Government give money to manufacturing industries? Create an investment bank to lend money to industries to build houses, invest in infrastructure projects, and create jobs. We need to manufacture and export to create growth. People need to have the confidence to spend, that means job security.
We still need to cut the debt, but it doesn’t have to be done so quickly. The coalition Government seems to want to portray the UK economy as a basket case. Nothing could be further from the truth, the UK debt is actually the 50th most indebted Country in the World. Not that bad and far less than the USA which stands at 15 trillion dollars, Canada, France and Germany.

This week Mr Osborne the Tory Chancellor told the House of Commons in the Autumn statement “people know that promises of quick fixes and more spending this Country can’t afford, at times like this, are like the promise of a quack doctor selling a miracle cure.” I think that what he really means is the medicine isn’t working but it’s not the medicine that’s the problem, you just haven’t had enough of it yet.

It’s a long time since I studied Economics but I was always told you can grow the Economy out of debt but you can’t cut your way out of debt. Unfortunately this Government’s not listening we haven’t had enough of their medicine yet.