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The Coalition's Answer To The Failure of Austerity - "Austerity Plus"
Peter Kellow writes
When the medicine doesn’t work there are few doctors who would say that you need more of the same. You need less, or none at all
i wrote in 2010 just after the general election, when the austerity programme was announced, that it could not work. The reason is obvious. It would lead to recession and decline in tax revenues putting the government more, not less, in debt. This is exactly what has happened
The coalition’s theory was that the private sector would step in when the public one retreated. You may have noticed that this particular piece of insanity has not been recently mentioned. And with good reason – it is has been categorically proven to be wrong. The private sector needs the public to survive and grow
The coalition’s archaic neo-liberal theory was first thoroughly discredited in the eighties when it was put to the test by Thatcher and Reagan and produced the biggest slump since WWI - until the present one
With the private sector now failing, the coalition’s response is to screw down the economy even harder and tighter. And we should not forget that the worse of the first round of tightening has not yet even taken place.
The axe will now have to fall in many more places and we can look forward to deluge of stories of suffering by those who most need help in our society.
And the tightening will be felt everywhere. To imagine that this will do anything but produce more negative growth is to try to defy economics, is to defy common sense. And all this is planned when our main trading partners in Europe are going into recession.
So why is the coalition doing this? Because the primary figure they watch is not any of the following
- Interest rates
- Growth negative or positive
- Quality of public services
- House prices
- Sleaze and graft at the heart of government
These are all things that concern the voters and those interested in the health of the economy and society. The coalition has its eye on just one set of figures
- The price of UK government bonds
This is the one single element that concerns them because it is the most important one to the multinational banks. And it is this sector that finances the Conservative Party and guarantees lucrative post-political-career positions for its main decision makers
And the Liberal Democrat politicians, who have abandoned their party faithful by throwing their lot in with the Tories, have no doubt been privately reassured that they will personally be looked after by the lords of finance when their party is massacred by the voters. Watch this space for the positions that Clegg, Alexander and Cable walk into when they lose political office.
As long as the government maintains the value of the bonds that it has issued, and will issue, the banks are satisfied. The fact that the people and productive businesses are feeling great pain is of no interest to them.
But at last it looks like we may have reached a pivotal moment where the democratic support for austerity will be tested. In May we will see:
- Local elections in many areas of Britain
- The French will have the chance to boot out Sarkozy at the final round of the presidential election next Sunday
- The Irish will have a referendum on the European Stability Pact at the end of the month
Meanwhile as we reported in the last newsletter, where democracy is being shut out of the political process, it is more and more having to take to the streets.
The battle lines are now being drawn up. More and more people and businesses are refusing to accept the dissembling of the economy in order to please a malign financial sector that has reaped so much havoc on our lives, leaving a trail of wreckage which touches all but themselves
The UK coalition and the European governments, that want to sign the European Stability Pact which will reduce nations to slaves of the Brussels and Chancellor Merkel, are being taken to task by their electorates as never before
By the end of May we may well see the politics of Britain and Europe redrawn, with austerity programmes on the back foot.
The Great Crisis of Western Economies that started in 2008, four years on, is nowhere near over.
The compliance of the people can no longer be counted on. We are entering an era of change.
We more than ever need new political forces to enter the fray.
RECOMMENDED ARTICLE OF THE WEEK
Politicians Braced For Backlash As Europe Turns Against Austerity
Voters sick of endless belt-tightening are threatening a backlash that could sweep their political leaders from power if they do not listen to the growing chorus for change
DEMOCRATIC REPUBLICAN NEWSLETTER 100TH EDITION
The first issue of this newsletter came out on Friday 5th September 2008. The next issue will the 100th and so there has been one nearly every two weeks on average. If you wish to see past newsletters you can see them here
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Why Were William and Mary Invited To Take Over The British Monarchy? What They Won't Teach You In School
The English Inquistion. The Crushing Of The Religious Freedom That Existed Under The First Republic
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The Future of Democratic Action -
Issue No 97 Sunday 01 April 2012
“The Best Three Days of My Life”
Issue No 96 Sunday 25 March 2012
A Pathetic Defence of the Monarchy
Comment from Member Richard O'Connor
I watched Question time that late evening, and I was disappointed at the stupid responses for keeping a monarch.
Not one of the panelists cared about accountability or democracy. No hint of a constitution to be protected from the Members of parliament of the day. Just propaganda...
There was no passion to have republican principles, with the exception of the panelist who was an author, good on her!
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