Today’s economic results were worse than anybody expected. The world economy is growing faster, and we are back into recession territory. And the Chancellor’s explanation – the wrong sort of snow.
Growth in the last three quarters has dropped from +1.1%, to +0.7% and now down to minus 0.5%. it doesn’t take a rocket scientist to understand that trend, nor it’s primary cause. The government has been taking money out of the economy, through it’s ’emergency’ Budget and Spending Review and tax increases like there is no tomorrow. But, no, it was the snow what done it.
The danger now is obviously a real, or rather further, collapse in consumer and business confidence leading to a real and serious double-dip recession when the rest of the world is starting to power ahead.
According to the Coalitions economic policy, if this does happen the answer will be not to take their foot off the break but to stamped down even harder. If cutting public spending ‘secures the recovery’, as they have foolishly claimed already, then clearly if it doesn’t it will be because they didn’t cut hard enough, according to Osbornomics. I very much doubt they will pursue such a course, but with this lot, who knows?