Saturday, December 06, 2014

Osborne's shattered economic plan put in context

Above is George Osborne's economic plan. On the left, in brown colour, is the projection he made in 2010, with the deficit - the difference between Government expenditure and income - falling year by year until it is gone in 2016-17. In red, we see what actually happened, with the deficit way above his projection. In pink, we have his present projection, from last Thursday. Again, as in 2010, he projects a falling away to nothing in the next 5 years.

Are we to believe him? Only the Tory press and their dupes believe him.

The UK economy is rarely not in deficit. Here is the trend since 1980:

Note that the yellow bit on the right is Osborne's 2010 projection, the brown in the top figure. Note the rarity that it crosses the line into surplus. Note that Labour under Gordon Brown inherited a surplus and held the deficit down until 2008, when he got generous with education and the NHS, and then the spike in 2009, when the idiot/criminal banksters blew the whole thing apart. 

Let's look further back, to 1948. Here we can see a definite trend towards greater deficit. 

Osborne was able to browbeat the UK voters on the necessity of austerity on the basis of big deficit figures, but only because the media, in the main, colluded with him, either out of stupidity or because they share his ideological belief that all state spending is bad.

One factor in the increase in the deficit is that most money is created out of debt. The more money is in circulation, the more debt in existence.  Here is a post on why debt is breaking the world economy.

The real answer to deficit is not to shrink the state, which is what Osborne wants to do,  despite the horrendous effect it will have on the UK, but to take back the monopoly of creating money from the banks.

Voters are not stupid. They dismiss Osborne's plan by a margin of 2:1

This is all a good reason to vote Green in  May 2015, since the Green Party is the only party that wants to do this.

Meanwhile, we have to grit our teeth while the papers and the BBC parrot Osborne's lies.

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