Monday, June 21, 2010

If Osborne gets it wrong tomorrow...

Caroline Lucas, Colin Hines and Richard Murphy have today published a Green Party Tax Briefing. To address the deficit, they concentrate on tax avoidance and other measures, and identify up to £63.3 billions per annum of taxes that could be raised. Taken together with an axe to white elephants like Trident, this is the way to address the deficit without increasing inequality and bringing on a second recession.

However, the reality is that the Cleggeron is rolling forward, a juggernaut riding on the blood and broken bones of the vulnerable. Caring Cameron Conservatism is gearing up for a knife attack on the body of State welfare. Now there is a huge amount wrong with the State machine and the benefit system, but the way to reform it is organically, from within, not by performing amputations with a billhook and a crowbar.

There is a chorus of economists and commentators warning that excessively early and deep cuts will bring on a recession. If we are wrong, we should apologise humbly. But if we are right, and Osborne does bring on a second recession, it will take more than an apology from him. But my imagination fails to come up with a suitable penalty, though the words "dip" and "dogshit" come to mind. 

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