Thursday 15 January 2015


There's more Tory talk of their "long term economic plan" than sex in the Sun.The difference is that the latter exists.There isn't and never was a long term economic plan merely a series of cruel improvisations designed to make the rich richer at the expense of the rest. We were all in it together but some were more together than most.

At the start in 2010 the plan was cut ,slash and roll back the state to punish the poor for not working and let the private sector flourish. It didn't because the consequence was to depress demand increase unemployment and therefore reduce government revenues and require more borrowing This produced four years of austerity and economic flat-lining.

We were rescued from this folly by two things. With the election approaching Osborne began to back track,loosen the purse strings and restore the investment plans which had been junked in 2010 .More important the Bank of England came to the rescue by printing £375 billion of money  which it shoved into the banks.It also kept interest rates flat to the floor as Labour had put them.That in turn produced an unsustainable house price rise but it also stimulated recovery and allowed people to take on more debt to sustain it-mostly by buying imports.

Result? Folk felt better though the improvement was unsustainable because investment didn't rise, too much of it went into house prices and personal debt burdens grew.If it works,and the Tories win the election  all of this will require a rise in interest rates which will be crucifying, an increase in taxes, (probably , VAT) and more. Cuts in welfare to get the deficit down. Yet winning is all and a Tory victory will allow the slashing of the state to continue The world will at last be made  fit for wealth to thrive in.Which is the real long term plan.

That's the plan. Don't let Labour ruin it.

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