’You Can’t Borrow Your Way Out of a Debt Crisis’. Er, actually you can Mr Osborne. It depends….

One of George Osborne’s favourite mantra’s is the above one. Unfortunately it’s based on a rather school-boy understanding of economics.
Of course everyone is familiar with the personal debt spiral. Adam and Eve enjoy the good life. They spend a bit more than they earn and make up the difference with credit card debt. Once they’ve maxed out their credit cards they start taking out pay-day loans at exorbitant interest. Before you know it their mole-hill of debt has turned into a mountain and they have no way out except bankruptcy and/or years of austerity. Continue reading

The Autumn Statement Blame Game: Austerity Agitprop and the Double (Triple) Dip (#SR2013)

The second major thing wrong with today’s Autumn Statement was the usual political spin embedded in Mr Osborne’s “it weren’t me guv” plea.

According to the Chancellor, supposedly aided and abetted by the OBR, the poorer than expected economic results, and knock-on poorer than expected public finances, is all down to those rotten Continentals over in the Eurozone (EZ). Continue reading

Geeky Gripes About the Autumn Statement. (#SR2013)

George Osborne delivered his Autumn Statement today to general critical declaim.

Let me begin with a rather geeky gripe about the Autumn Statement. It was a mini-Budget, indeed a mini-Spending Review, rather than an Autumn Statement. In this George Osborne has gone one up on his predecessor, Alistair Darling, who has famously said he delivered 6 Budgets in his 3 years as Chancellor (in his book ‘Back from the Brink’). Continue reading