Friday, June 25, 2010

Nailing the Coalition Lies

I'll be returning to the emerging true nature of Tuesday's Budget shortly - in the meantime I'm indebted to my friends at Liberal Demolition for this timely corrective on the record of the outgoing Labour Government.

Today George Osborne claimed that “having inherited from Labour the largest budget deficit in Europe bar Ireland, the new Conservative-Liberal Democrat coalition has been forced to take drastic action”. http://www.thisislondon.co.uk/standard/article-23848140-george-osborne-we-had-to-deal-with-the-problem.do

The reality is that as a result of the prudent early decisions of Tony Blair and Gordon Brown we entered the recession with the 2nd lowest level of debt of any of the G7 countries. One of Labour’s key decisions was to use the £20 billion plus windfall from the 3G auction (the mobile phone spectrum) for debt repayments.

The OECD figures for G7 countries for the calendar year 2009 give general government net financial liabilities as a percentage of GDP as:

Japan – 108.3%
Italy – 101.0%
United States – 58.2%
France – 50.6%
Germany – 48.3%
UK – 43.5%
Canada – 28.9%

http://www.oecd.org/dataoecd/5/51/2483816.xls

The OECD figures for 2010 show that the UK’s general govt net financial liabilities as a percentage of GDP is 53.5. Lower than the Euro zone average of 59.5.

Other EU countries which have higher levels of debt are:

Italy – 104.1%
Greece – 97.8%
Belgium – 83.3%
Portugal – 64.3%
Hungary – 60.1%
France – 57.2%

http://www.oecd.org/dataoecd/5/51/2483816.xls

Labour put the country on a steady footing to weather the recession. Because of this the budget deficit could have been reduced at a steady pace, without the risk to future growth and without the raid on the most vulnerable in our society. Instead The Coalition has opted to slash public services and hike up taxes in a direct attack on hard working families in this country.

12 comments:

Ozzy Osbourne said...

It would appear to be more Fib's Nick Ozzy Osbourne could have done better.

How do we as a Country force them out, is there any process like a vote of no confidence?

I think if we can collapse the alliance and force another election there would be a dramatic shift in voting paterns as it is clear the Fib's are liar's and untrust worthy and the Torys proved just how much they dispise the poorest part of society when they did not hit the greedy bankers or consider the so called "Robin Hood" tax.

Long live the revolution!

Just who exactly do we owe this national debt too? Are they likely to be sending the baliffs in?

With 75%+ of all cabinet members Millionaires I know which doors they should be knocking on.

Why does the National Debt need to be paid off so quickly why cant we come to a debt plan like with our gas bills?

It seems to me to be an excuse to hit the poor and ill and take from their already little income, I know many unemployed, ill or disabled and none of them seem to be living the lifestyle this rich Gov is trying to portray, many have to shuffle finances on an "who is most important" to pay first routine on a regular basis.

DLA is just that not a bonus but extra money to help pay for essential extras the able bodied don't need it is already a nightmare to get, not the eaasy tick 2 boxes form your readers seem to assume.

These back to work assesments are narrow in their remit simply to reclass people (who are not really) as ready for work (wheres the jobs) merely to reduce the amount of benefit payed, while the greedy MP's expenses keep rising.

As for this reduce a persons housing benefit by 10% after a year that is draconian and where will these people live, there is no Council houses or very few?

Sending money abroad in aid is a disgrace when we are punishing our own people, fine if we could afford it but not in a ressession. I read a comment by Mike Barker who said one day these countrys will pay us back, come on Mike smell the Coffee, what bloody year will these 3rd world countrys be able to pay us back?

He even suggested that people who supported stopping foreign aid should join the BNP that is ridiculous all people are saying is don't punish british nationals while rewardsing countrys thousands of miles away.

Not that the Fib's voice will ever be taken seriously again after Tuesday when they broke their promise on VAT!

Sorry they took a "tough decision" that sounds so much better than lying.

Now they are implying that if they can screw more from the poor they can reduce public sector cuts, obviously either side of that argument is now for it being the other one, is this not deliberate and a game of divide and conquer from slimey Cameroon?

If anyone is to be means tested make it he MP's most are multi millionaires from privalidged backgrounds lets see how many still want the job if thye had no allowance and their expenses were cut but 75% most have expenses over £130K most is staffing ...welll stop employing your toff mates and take on some of those from the dole you are so keen to get back to work.

Second highest is travel wells top going by rail get a national express bus pass yes it takes longer but sit and get paperwork done.

Anyone who is an MP and does not agree to these cuts is in it for the money and perks, I am not saying Labour were angels Alan 6 Jobs wasa a disgrace to Darlington yet the local Labour party seemed not ot care!

I don't know Jenny Chapmans financial background lest to say she lives in a nice area I only hope she is not poisoned from the greedy cup like her ex boss and predecessor!

Libs around the Country stand up to Cleggy, tell him his puppy dog behaviour is not acceptable and if he does not listen remove him for leadership, he has made your bad hard to sleep in for the forseeable future!

LEAVE THE POOR ALONE!

Anonymous said...

Calm down Ian. It's worth logging on to Nick's blog just to see what new aliases you come up with, even though you're clearly bonkers.

Paul Cain said...

I would have thought that a Labour politician would have realised by now that something doesn't become true just because you keep saying it is.

This is just another example of Labour's remote relationship with the truth.

Stop trying to mislead people, Councillor. That way, you might, in a decade or two, restore some of the trust you threw away after 1997.

You do not mention that the OECD figures do not include public sector pension commitments and PFI debts - which would take our debt by percentage of GDP to approaching 25 per cent - the highest by miles of any major economy.

As it is, our debt to GDP ratio in 2010 is 13.3 per cent - you can see the full figures here:

http://manyeyes.alphaworks.ibm.com/manyeyes/visualizations/oecd-countries-deficits-and-nation

This graph shows that we've already got the highest ratio of debt to GDP in 2010 - and that with the consequences of your party's near-criminal scorched earth policy in the last 5 years, the situation is going to get, critically, worse.

In 1997 we had one of the most stable economies in the world.

Now, we're a basket case and, as always happens when governments are forced to retrench, it's those who are the most needy who suffer the most.

Labour ran out of our money.

Again.

The consequences are not going to be pretty.

it's the fault of people like you, Councillor.

And yet you still use your blog to make borderline dishonest claims.

You haven't learned a thing from your rejection on May 6, have you?

james said...

Paul, I'm curious to know how deflationary policies are going to restore stability to the UK's economy and public finances.

The Tory-led coalition is depending upon a surge in export-led growth in the next few years to make up for the aggregate demand taken out of the economy by public spending cuts - yet they are abandoning Labour's active industrial policy which has secured investment in export industries. Abandoning Sheffield Forgemasters is a clear example - and demonstrates how out of touch Nick Clegg is with his constituents.

Even more absurd is the Tory-led coalition plans to reduce corporation tax for all firms - regardless of whether they are geared towards exporting goods and services - and to do this they are reducing tax incentives for firms to invest in new plant and machinery. In other words, banks and supermarkets will gain at the expense of the advanced manufacturing industries required to make our way in the world.

Paul Cain said...

James

I'm curious to understand your attachment to yet more artificial 'growth' in the UK economy.

Gordon Brown and Labour did that for 13 years and look where it got us.

I'm curious to understand why you don't realise that the artificial creation of growth in time of recession is fine and dandy so long as you ran your public finances at a surplus in the good times.

Which, naturally, Labour did not - instead it threw dozens of billions down the black hole that is the UK's sclerotic, unreformed, inefficient and downright idle public sector.

The debt - not to mention the yearly deficit - trumps everything.

The international money markets dictate that.

There has to be pain - the UK economy deserves it. We are at the stage, thanks to the weird thought processes of the Labour party, where pain is necessary and, sadly, unavoidable

james said...

"There has to be pain - the UK economy deserves it"

What was that about weird thought processes, Paul?

Paul Cain said...

Yes, James, an economy that, both in terms of household and government debt, spent 20 percent more than it earned - even in a number of boom years - deserves pain.

Your response tells us everything we need to know about the politics and values of people like you: do not tell us of the consequences of our actions, do not force us to face up to the inevitable results of our stupidity.

You live in a parallel universe to the rest of us James.

God forbid that you, and people who share your values, ever get the chance to gut our country's economy again.

james said...

Paul, who created this crisis - the reckless rich or the rest of us?

The deregulation of credit was not a policy introduced by the Labour government, but inherited by the Tories. In the context of a global loosening of restrictions on credit and the mobility of capital, changing this would have been very difficult - and no doubt opposed by you Tories.

Anonymous said...

Oh Paul you aren't going to shift James from his parellel universe. Alan Macnab tried a couple of weeks ago and couldn't get him to face the facts that the Labour Government ruined the country's finances. Perhaps he will now blame the Coalition Government for England going out of the World Cup.

james said...

Alan Macnab had the decency to make his criticisms under his own name, Anonymous - or should I say, Paul?

No, I won't be shifted from my position. Labour may have made mistakes in office, but acting to end the recession was not one of them.

Preventing unemployment, business failure, and home repossession from rising higher is the right thing to do. And yes, that means deficit spending to sustain the economic recovery.

Paul Cain said...

James

A bit of navel gazing on my part, but anonymous is not me. I always post under my name

if Councillor Wallis can track the ISPs of the computers involved he will see that mine is, indeed based in New York City and Anonymous's post will be from elsewhere

If he can't do that, then you'll just have to take my word for it: It isn't me.

james said...

I'll take your word Paul.