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The coalition, and the cuts consensus, have to be challenged, not indulged.
Tags: Alan Johnson Ed Miliband budget deficit Ed Balls Economy
simple media people we employ in this country, in time in memoriam,
whatever Benedict - how about some,
I think what Labour needs to address is that we are no longer the party of economic competence, back in 97 GB was the iron chancellor who spoke of prudence and golden rules.
What the whole crisis shows is that you really should run budget surpluses when times are good, this allows us to be better prepared and more resilient when times are bad. I think we all deluded ourselves with talk of solving boom and bust forever. Labour needs to be serious about the deficit if it will ever be taken seriously again.
The coalition are already talking about staggering the cuts over 4 years so they make take an entirely sensible approach to the deficit reduction - remember between now and the next 4 years we still borrow another 250 billion pounds (that is some serious cash our future generations will have to pay).
In addition on the whole argument of % cuts vs tax increases - limiting direct taxes is the right policy advocated by Ed, higher direct taxes always provide the wrong incentives to work that extra mile. A very credible alternative is the Land Tax, land which unlike corporations and labour is not mobile and is a proper wealth tax on unproductive immobile assets.
Mehdi Hasan is a contributing writer for the New Statesman and the co-author of Ed: The Milibands and the Making of a Labour Leader. He was the New Statesman's senior editor (politics) from 2009-12.