"If you're going to panic, do it fast and beat the crowd." ~ Jesse Livermore

Tuesday, December 11, 2012

Real recovery task is scaling back the state

The real work has yet to begin--in Europe, the U.S., and U.K.--

Real recovery task is to scale back the state - Telegraph: ". . . Our 41-year-old, relatively inexperienced Chancellor was batting, to say the least, on a sticky wicket. Yet while he played a reasonably good game politically, as he delivered his Commons set-piece on Wednesday, I still believe that the economics of Osborne’s statement fell woefully short of what is needed to rescue the UK from its parlous state. Osborne came into office in 2010, after years of Gordon Brown’s fiscal vandalism. As such, the current Chancellor faced the unenviable task of taking very tough and radical action to restore the UK as one of the world’s leading advanced economies. Yet while his “austerity” rhetoric has been strong, Osborne’s policy implementation has been extremely patchy. In the fiscal year 2009-10, current government spending amounted to 42.9pc of GDP. In 2012-13, for all his “tough choices” bluster, spending will be 42.3pc of national income – by no means a significant reduction. The Chancellor talks a good game on mending this country’s finances but the task has barely begun. And amid all the theatrics, and hair-shirted mood music, this Autumn Statement pointed only to lower growth, higher borrowing and crucial targets to get our deficit and debt under control being pushed ever further into the future. . . . "

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