Better than Labour
[Re: Coalition must not become complacent on economic growth, yesterday]
Although the coalition should avoid complacency over economic growth, it’s also important that it trumpets the advantages of its economic policy against Labour’s alternative. Yes, austerity has not been pushed as far as it should have been. But a continued reliance on the assumed benefits of stimulus spending would have been disastrous. Yes, there has been confusion about how far the government should intervene to encourage growth. But some supply-side reforms have been attempted. Be glad our economy is being run by George Osborne and not Ed Balls.
[Re: Why Sir Mervyn King’s defence of QE fell short, Tuesday]
The negative effects of quantitative easing (QE) are not solely seen in rising prices (or at least their likelihood). QE also devalues our currency and renders many pensions not far from worthless. A £100,000 pension pot now buys you an annual income of just a few thousand pounds, and a lot of people are going to look aghast when they realise how little their auto-enrolled pensions will leave them to actually live on.
Sir Mervyn King has presided over an unprecedented financial crisis. Where’s the contrition?
Very encouraging GDP figures. Amid politicising, the real prize is a timely boost to business confidence.
Ford’s factory closures show there’s no room for any complacency as we seek to secure the economy.
Can the economic bounceback last? Unlikely when services growth last quarter was more than twice cumulative growth since 2008.
The coalition can’t take credit for this GDP growth. It’s down to the hard work of business people and entrepreneurs.