Balls: Osborne’s “we’re all in this together” economic mission has failed

Ed Balls today said George Osborne’s “economic mission”, on his own terms as set out two years ago, “on all three counts”, has failed.

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Ed Balls today said George Osborne’s “economic mission”, on his own terms as set out two years ago, “on all three counts”, has failed.

Upon ascending to power, the chancellor outlined his economic strategy to “deal with our debts, set our country on a brighter economic course and show that we are all in this together” – promises he has abjectly failed to deliver on, according to Balls.

Writing in the latest Tribune magazine, the shadow chancellor takes each point in turn:

First, on securing a brighter economic future, the government inherited an economy which was starting to grow strongly with unemployment falling month by month.

But the recovery was fragile and, as we warned, cutting spending and raising taxes too far and too fast risked choking off that growth – especially as a global economic hurricane was brewing. The chancellor thought he knew better, but ever since his spending review the British economy has flatlined and has now been pushed into a double-dip recession. And let’s be clear: this is a recession made in Downing Street by David Cameron and George Osborne’s economic mistakes.

For all the attempts to blame the eurozone for what’s gone wrong here, the fact is Britain would have been in recession over a year ago if it was not for the positive contribution to the economy of exports to Europe and the rest of the world. Despite the problems in the single currency area, France, Germany and the eurozone as a whole are not in recession. [As Graph 1 shows].

After trying to blame the snow, the Royal Wedding and then the eurozone, the chancellor has run out of excuses for why his reckless and unfair policies have failed.

Graph 1:

EU-US-growth-2010q3-2012q1

Second, on George Osborne’s claim that ‘we are all in this together’, the budget exposed that as an empty slogan.

How can it be fair to give a £3 billion tax cut to the richest people in the country – worth over £40,000 for just 14,000 millionaires – while raising taxes on pensioners, families, pasties, church repairs and even charity donations? When a family with children will lose an average of £511 from changes coming into effect this year, the Budget’s tax cut for those on over £150,000 showed just how out of touch the government has become.

And finally, the voters were promised that all the pain of deeper spending cuts and bigger tax rises would be worth it to get the deficit down.

Many people who voted Conservative in 2010 were prepared to go along with short term pain for long term gain. But slow growth and rising unemployment, with more people out of work on benefit rather than paying taxes, has meant billions more borrowing. The government won’t now meet its key pledge to balance the books by 2015 and is set to borrow an extra £150 billion-– borrowing to pay for economic failure, rather than borrowing to invest in the jobs of the future.

 


See also:

Osborne’s austerity is strangling Britain 16 May 2012


 

Grim times indeed; as Balls concludes:

“A prolonged period of high unemployment and slow growth will make the deficit worse not better and cause damage well beyond the two years of economic failure we have already seen.”

 


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31 Responses to “Balls: Osborne’s “we’re all in this together” economic mission has failed”

  1. Pulp Ark

    Balls: Osborne’s “we’re all in this together” economic… //t.co/YM5HRr10 #SustainableEconomy #economy #EdBalls #muslim #tcot #sioa

  2. Tristram Wyatt

    .@EdBallsMP: Osborne’s “we’re all in this together” economic mission has failed: //t.co/woNWRHVK by @ShamikDas

  3. Lord Blagger

    There is a very simple explanation, and I’m surprised you’ve missed it.

    1. No cuts – spending is up
    2. Taxation – another 30 billion taken off the public
    3. Debt, debt and more debt 7,000 bn currently owed by the state.

  4. stopsharia

    Balls: Osborne’s “we’re all in this together” economic… //t.co/zmQpW15i #SustainableEconomy #economy #EdBalls #muslim #tcot #EDL

  5. Christian Wilcox

    The #Torys are still wrecking the economy: //t.co/SolO9EpN. They just aren't smart enough to do it. #Croydon #Labour (@GavinBarwellMP)

  6. Alan Cowan

    Balls: Osborne’s economic mission has failed //t.co/sxb9fDqT

  7. Doug Fisher

    Balls: Osborne's “we're all in this together” economic mission has … //t.co/gZnOQGgY

  8. Stephen Wigmore

    Any particular reason you’re are parroting propaganda from Labour party central?

  9. Anonymous

    Any particular reason you’re trolling a left wing site?

  10. Anonymous

    1. Massive cuts. Spending on covering the damage done by the cuts.
    2. Tax cuts for your buddies
    3. Quite irrelevant, given it’s long-term, low-rate and largely internal.

    Keep pushing for the equivalent of Singapoor’s CPF though, which grew at 2.5% compared to their 5% inflation last year. That’s your “retirement plan” for the majority, right there!

  11. Timbo

    Spending is up because unemployment is up. There are still cuts to services.

    The state does not owe £7 trillion. It owes around £1 trillion. But we could potentially be saddled with a much larger debt because of the banks the government promised to underwrite. This is a private sector generated economic crisis and it is market failure that in the financial sector that is at the root of all our problems with private companies begging to be bailed out by the state.

    Your a weird one Lord Blagger, that’s fer darn tootin’.

  12. Kevin Richards

    Back ta drawing board George RT @leftfootfwd: Balls: Osborne’s “we’re all in this together” economic mission has failed //t.co/lxxFVvTp

  13. BevR

    RT @leftfootfwd: Balls: Osborne’s “we’re all in this together” economic mission has failed //t.co/bQph5ks9

  14. @GrannyWils

    .@EdBallsMP: Osborne’s “we’re all in this together” economic mission has failed: //t.co/woNWRHVK by @ShamikDas

  15. Foxy52

    RT @leftfootfwd: Balls: Osborne’s “we’re all in this together” economic mission has failed //t.co/bQph5ks9

  16. BevR

    RT @leftfootfwd: Balls: Osborne’s “we’re all in this together” economic mission has failed //t.co/bQplCUt3

  17. Howard Ricketts

    RT @leftfootfwd: Balls: Osborne’s “we’re all in this together” economic mission has failed //t.co/qCsTUlbQ #fb

  18. Blarg1987

    Cuts are already happening, although it is a heavy upfront cst in the form of redundecy payments and also unelployment benefits to be paid out going up due to more people.

    taxation is needed to oay for services that we need and want unfortunately otherwise how would we pay for things, yes things can be made more efficent but you will get to a point that you can;t make things any mre efficent and have to pay for it one way or another.

    Most goverment debt, PFI, Goverment guarentees etc came from political parties with right wing ideologies such as new labour who continued the previous conservative parties policies, to balme the left is sillyness really.

  19. H. O.

    RT @leftfootfwd: Balls: Osborne’s “we’re all in this together” economic mission has failed //t.co/3bZkcRFj

  20. cameronsfollys

    Balls: Osborne’s “we’re all in this together” economic mission has faild //t.co/tq3b1WM4 [What's betting Labour'd do exactly the same!]

  21. Anonymous

    Spending is up. Check the Red book for the facts rather than the BBC spin.

  22. Anonymous

    Bollocks is it just a trillion.

    1,050 on Gilts. //www.dmo.gov.uk for the actual figures.

    Now, what about civil service pensions? No assets held against them, but no doubt the civil servants will want to be paid for PAST SERIVICES. It’s a debt. Depending on the discount rate used, that is either 1,135 bn (See the whole of government accounts) or 1,500 bn. The first figure laughably assumes they hold Corporate bonds and they never default. The second is the realistic figure. Pensions payouts grow with inflation, which is the contract.

    So immediatly we can see that the 1 trillion figure is a complete work of fiction. A lie. It’s a fraud pure and simple.

    So if the government now includes the civil service pension on the books, why is it excluding the state pension and the state second pension?

    Ah yes, next you will be telling me that its optional and these debts aren’t debts, because they will never be paid.

    Or is it that we should book the citizens of the UK as assets owned by the state, and have a stud book of their breeding like the slave owners on plantations? They are already half way there.

  23. Anonymous

    The second, spending is up because unemployment is up.

    Tell us how many more unemployed, and what the increase in spending is as a result.

    Then we can tell if its baloney and the cause of 150 bn a year overspend. We can also work out what the unemployed are being paid. How many thousands a year they are getting. [Divide one by the other]

    Now if the payments aren’t large, then lots of follow on questions arise. If the ‘growth’ solution is getting them back to work, we can work out how much extra tax each unemployed person is going to have to pay to make the 150 bn a year. Or we can tell if the plan is to screw other people.

  24. Blarg1987

    And where has most of the additional spending gone?

    Redundecy payments in the oublic sector, higher unemployment payements, private sector contracts in outsourcing services due to “risk” and “unforseen” costs.

    I admit there is more it then that but it can explain cuts in services and higher borrowing figures.

  25. Jane Leach

    RT @leftfootfwd: Balls: Osborne’s “we’re all in this together” economic mission has failed //t.co/eKZ5pUyZ

  26. James Mills

    Slow growth and high unemployment make cutting the deficit impossible: //t.co/vpdswOcn #PMQs

  27. diana foster

    Slow growth and high unemployment make cutting the deficit impossible: //t.co/vpdswOcn #PMQs

  28. Lee Hyde

    Slow growth and high unemployment make cutting the deficit impossible: //t.co/vpdswOcn #PMQs

  29. SFo

    Slow growth and high unemployment make cutting the deficit impossible: //t.co/vpdswOcn #PMQs

  30. Brian Tomkinson

    Slow growth and high unemployment make cutting the deficit impossible: //t.co/vpdswOcn #PMQs

  31. S

    Slow growth and high unemployment make cutting the deficit impossible: //t.co/vpdswOcn #PMQs

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