Labour's right to join the economic debate is under attack
Osborne's attempt to create a sense of equivalence between Fred Goodwin and Ed Balls is a threat to
By Rafael Behr Published 03 October 2011 16:25
George Osborne's speech had two distinct purposes. The first and most obvious was to show that the government is not complacent about the stagnating economy and the effect it is having. This he aimed to do with a rash of announcements, the most significant of which is surely the interest in "credit easing", by which the Treasury lends directly to firms. As my colleague George points out, this looks like a tacit admission that Project Merlin - the deal between government and the banks to increase the supply of private sector credit - is failing. It is worth adding that other devices that were meant to stimulate the economy by disbursing government cash, notably the regional growth fund, are also implicitly belittled by this move. The growth fund has yet to actually hand out any money.
The second of Osborne's tasks was to reinforce the coalition's central political message about Labour's responsibility for creating the crisis. This Osborne did with a sleight of rhetorical hand, embarking on what sounded like an attack on the bankers but blended seamlessly into an attack on the shadow chancellor. The aim is to create some sense of equivalence in people's minds between the dereliction of responsibility shown by the likes of Fred Goodwin at RBS and the fiscal management of the last government. It is a crude device but one that poses a big threat to Labour. Osborne doesn't want to beat the two Eds in an argument on the economy, he wants to trash their moral credentials to even participate in an argument about the economy.
Given how effective the Chancellor has already been in promoting his account of Labour profligacy as the prime cause of austerity, Miliband should be worried by this renewed assault on his entitlement to have a view. The argument Miliband made in his conference speech - that the Tories' economic analysis represents the last gasp of a failed model of irresponsible free market capitalism - requires a degree of historical and ideological perspective that many voters don't bring to bear when apportioning blame. Labour badly needs a sharper rebuttal.
One other point on Osborne's political calculations: The heavy emphasis on the failings in the eurozone was inevitable, but the tone, essentially blaming continental governments for creating the conditions that are now holding back the UK economy, was new. The Chancellor clearly felt the need to lash out at "Europe" in some way to appease the large numbers in his party who see the single currency crisis as an opportunity to renegotiate Britain's whole settlement with Brussels. But I sense another element to this argument. Osborne lavished praise on William Hague for his 2001 election campaign dedicated almost entirely to demands to "save the pound". The Tories lost by a landslide. Now that the euro is in dire trouble, Tory strategists are sensing an opportunity to salvage some credibility from their wilderness years. This isn't so much a eurosceptic argument as part of the Tory "decontamination" agenda. Osborne seems to be re-branding old political failures as a kind of foresight.
The Chancellor doesn't just want to monopolise economic argument in the present and future, he wants to rewrite the past too.
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18 comments
@ Stued Eel !
There be but one Liebore... we should all be grateful for that !
I've figured it out - ML Bonwick-Jones (Mrs) is in actual fact a satirical comedy genius. The evidence is in this quote:
"Just one more thing Standard and poor just after the Chancellor's speech reaffirmed our AAA rating, but have said this could change if the goverment were to stray from our austerity measures, Who is right Ed Balls or the world's Leading credit agency?"
As any fule no, the 'world's leading credit agency' is a hamfisted enforcer for hedge funds and other jackal traders. I'd give serious consideration to the opinion of Kermit the frog before that of Standard & Poors.
@ Stuart Eels...
Mike who ? !
Robert taggart
Is that the best you can do after a day, oh my what a bore you are, you are almost a liebore!
AlastairX - sorry, I should have been clearer. By 'political failure' I meant the whole Hague leadership period. Even if he was right about the euro he was plainly wrong about how to win an election in 2001.
Ed Ball's is the Last gasp of a failing model, and that last gasp is him trying to re-write Labour's past, and his last biggest betrayal to the decent and hard-working voters who always support Labour it not just saying there is money left once they spent it all but to say thing's are not that bad they can be done my way and that you can continue to spend your way out of dept building a new economy on sand shows how much he has always put politics before country and ed Miliband should replace this man as soon as possible.
Just one more thing Standard and poor just after the Chancellor's speech reaffirmed our AAA rating, but have said this could change if the goverment were to stray from our austerity measures, Who is right Ed Balls or the world's Leading credit agency?
The re-writing of the past is on thing, but Osborne seems to have overcome the problem of cognitive dissonance with his line that the financial collapse was all Labour's doing, but the failure of his so-called strategy is due to the vagaries of international economies.
You can't have it both ways, Gideon. We either control our destiny or we are hostages to fortune.
It seems that for Boy George, Orwellian doublethink is not just possible, it is indeed desirable.
One thing that confuses me about George Osbourne: he keeps claiming that his "Plan A" is on course to deliver the required savings, but (a) growth forecasts are continually downgraded, which probably means less tax income than expected over the parliament's term, (b) he keeps finding mysterious pots of cash to splash out, so presumably the reduction in spending isn't as great as he hoped. In the light of (a) and (b), how can the deficit reduction programme still be on course, unless he plans to find significant further savings on top of those he's already announced?
As for Labour, admittedly they were spending a lot of money, but the main growth in the deficit was due to the collapse in taxation revenue when the recession hit. I can't help but wonder if Labour had spent less and create a net surplus in the 'boom' years, would the Conservatives have congratulated them on saving up for a rainy day, or would they have moaned that the government was being miserly by collecting lots of taxpayers' money but not spending it (and thus calling for lots of tax cuts)?
Methinks Liebore would be well advised to keep their heads down concerning economic matters... for at least a generation !
"re-branding old political failures"
William Hague (amongst others) was warning that a one-size-fits-all monetary policy across all of Europe would fail, and that it was vitally important that Britain keep monetary sovereignty. He was correct. Calling that an "old political failure" is sophistry of a higher order.
Ed Miliband has gone up in my estimation since he hacked off the biggots in Labour by calling a truce on Labour's envious vendetta against hard working families who want to do something for their kids by sending them to private sector education instead of having holidays and a nice house.
But just look at the picture of Herr Balls above and add a hitler mustache... the likeness is scary. Then just add the uniform...
http://www.thejc.com/news/uk-news/31346/ed-balls-nazi-costume-attacked-v...
Nice guy.
Balls up is the tories election winner and I think most Labour people are starting to realise it.
For the love of mike Robert Taggart, give it a rest yiou weren't funny oh so long ago and you are still so unfunny!
AlastairX yes Hauge was right but it was Gordon Brown who refused to join when being pressed by Blair and Ken Clarke.
"I can't help but wonder if Labour had spent less and create a net surplus in the 'boom' years, would the Conservatives have congratulated them"
Well considering Osborne was promising to match Labour spending plans right upto the financial crash in 2008, I can only affirm that imitation really is the best form of flattery.
Didn`t Gideon and Flashman promise to match Labours spending in 2007?, he must have forgot about that, which is an easy thing to do when you`re an out of touch Tory HYPOCRITE!!, i don`t recall Flashman and Gideon screaming at labour to stop spending when they saved the banks?, or keeping people in jobs?, Wasn`t it the Tories in power during Black Wednesday?, Gideon must`ve forgot that!, and wasn`t Flashman lamonts special advisor during this Humiliation?, very easy to forget when you have selective memory syndrome!, especially when it`s not politically conveniant!!, Stick to popping one out into your magazines Gideon, that`s all you`re fit for you incompetent squeaky voiced inbred!!.
I could not disagree more. How is it that when Labour left office, economic growth was around 2-3% and the deficit was much lower than it is now? We must remember too that no one political party dissented from Labour’s spending plans; indeed the Tories were promising to outspend Labour on Health and Education. The Tories cannot have it both ways. They blame the Labour Party which is no longer in office for the economic woes; they blame the profligate Eurocrats for the Euro zone debacle. In fact they Tories blame everyone other than there own feeble, ill thought out policies which to date have brought no tangible benefit to the British people. The speech today by Osborne shows how little he understands elementary economics. I predict the UK economy will remain in low growth recessionary mode at least until 2020. I feel sorry for all those hard working families up and down the land who are suffering the consequences of this dire economic situation. The idea that in modern 21st century Britain, families are skipping meals in order to avoid going into debt is a truly shocking statistic. Grant Shapps was asked on the radio today what cutback he had made to his family budget. He said he had cancelled the Sky TV package. Most families cannot afford to eat let alone afford Sky packages. The two major errors that Labour committed was on bank regulation and failure to build half a million affordable homes.
in terms of gids saying he would have matched spending during the prolifigate years that's just politics.
alistair darling had a challenging deficit reduction plan but we can never out-do an osborne deficit reduction plan - even if osborne came out tomorrow and said he was going to increase the deficit by increasing spending - we would always say we would spend more.
personally if you ask me that's bad politics and balls is the worst type, nothing he says is credible - i would bring back darling tomorow.
Raf
have you thought that when victory is handed on a plate then anyone will help themselves to it.
Your piece is clever but ultimately Osbourne hasn't really had to work at his speech. The left insist on providing open and home goals, principally cos it's alawys correct. Balls and Brown brought this country to its knees, backstabbed blah blah blah yet there are plenty here who would have it no different, indeed the party wants it no different. It's classic socialist 'i know better than u' type thinking, despite all the facts- and now, because this all impacts on average joe, well he's not pleased and has had enough of the leftist mania.
Can't wait to see if balls backs the strikes hehe...
If I were miliband i'd convince the baboon to do so then jettison the clown next year. Ah well, beats telly...
The English are not so stupid as they look. (name that film?)
Its a fixed term parliament. For all his talk, George Osborne will be measured by the British people on the elimination of the deficit in one parliament -- his big promise.
David Cameron will be measured on his promise to cut the deficit not the NHS -- his big promise.
Nick Clegg has already failed. Tuition fees -- his big promise.
For all their post-hoc rewriting of history, they cannot hide from breaking such big promises.
2013 will be a bad time to be a Tory (or proxy Tory aka LibDem).