Week 17: Villain – George Osborne

by Jackie_South on April 29, 2012

Our award this week for the greatest villain of the last seven days goes to the Chancellor of the Exchequer, Gideon George Osborne

There were two contenders for Villain of the Week this week: Osborne and Jeremy Hunt.  Ultimately, Gideon won out: the damage and misery he is inflicting on the country outweighs the Westminster Village obsession with the Murdochs.

On the heels of the Omnishambles farago of Granny Tax, Pasty Tax and Charity Tax, we have had the inevitable news this week that the Coalition’s kamikaze austerity dive has resulted in double-dip recession.

Since our inception, we have been warning that the government has got it fundamentally wrong: the deficit is a symptom of economic malaise, not a cause.  Recession means less tax income and more benefit expenditure, widening the deficit.  The solution to both is to boost economic growth to close the gap, not to enter into an Irish-style economic death-spiral.

The problem with Osborne and the Coalition economic outlook is to have been entranced with their view of the Eighties, seeing public sector cuts as a spur to private enterprise.  It was not really true then, and created lifelong misery for the long-term workless that those cuts produced.  But what the Eighties did have which we do not have now is the engine for that private sector growth: easy credit.

That lack of credit, which gave birth to the recession in the first place, together with the severity of the public sector cuts, mean that Osborne’s hard medicine could do nothing other than end up being shown as the quack potion it is.

It is no good blaming Europe either: if this really was the main cause, how come the German economy is in growth?

Or look at the States, where Obama has opted for stimulus first even if it means temporary growth in the deficit.  It is a policy that has created sustained growth.

Osborne’s stubborn adherence to a disproved economic ideology is costing the nation dear and will doom another generation in the same way Thatcherism did.  It is villainy indeed.

{ 1 comment… read it below or add one }

Mike Killingworth April 29, 2012 at 2:23 pm

Only the seventh time he’s won this particular prize…

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