Cut, cut, cut: Alistair Darling v Greg Barker
The inconvenient truth is that Labour also wanted to cut more than Margaret Thatcher.
By Mehdi Hasan Published 04 April 2011 16:45Shadow cabinet ministers and Labour-supporting bloggers alike have become excited by this quote [below] from the Tory minister Greg Barker, speaking in front of an American audience:
We are making cuts that Margaret Thatcher in the 1980s could only have dreamt of.
He's right. But the Labour response is, ahem, odd. Angela Eagle, the shadow chief secretary to the Treasury, says:
Greg Barker has let the cat out the bag about the ideological agenda behind this Tory-led government's deep cuts to public services.
Hmm. People in glass houses shouldn't throw stones. The inconvenient truth is that Labour, in the so-called Darling plan for deficit reduction, had also planned to go beyond Thatcher, too -- and were equally keen to "let the cat out of the bag".
Here's the relevant quote from the then chancellor, Alistair Darling, in an interview with the BBC's Nick Robinson in March 2010:
Robinson: "The Treasury's own figures suggest deeper, tougher than Thatcher's -- do you accept that?"
Darling: "They will be deeper and tougher -- where we make the precise comparison, I think, is secondary to an acknowledgement that these reductions will be tough."
That's why the Darling plan was such a bad plan. Halving the deficit over four years is a political decision on a political timetable; it has nothing to do with economics. I can't help but agree with Polly Toynbee, who wrote in her Guardian column on Saturday:
Labour should seize this moment. Increasingly trapped inside Alistair Darling's straitjacket, Labour should embark on a new economic direction. The FT quite fairly analysed the figures: the difference between Labour and coalition deficit reduction plans is just £24bn by 2014. Ed Balls's claim that cutting half as much is "a massive difference" is only true if he offers a route map to explain what tax rises and what growth formulae deliver the same deficit reduction as would Tory cuts. Both Eds sound uncomfortable because sticking to the Darling plan means more painful cuts than they can admit. The argument that they are not in power so don't need a complete budget may be tactically correct, but it doesn't work as a public statement. Labour can only take a commanding lead over the next austerity months by offering a more convincing economic alternative.
Over to you, Mr Balls . . .
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28 comments
Would Labour be doing anything different? You have to admit the coalition are listening, something arrogant Labour never did.
@Tuonela: We've sorted the animal question out. We are all animals, the whole human race! Have a little look at the other animals and notice the similarities.
In fact some animals have extraordinary abilities that we don't have. Dogs for instance can look around corners because of their fine sense of smell. And some animals 'know' the future as they can tell when an earthquake is about to happen. How about that!!!! We can't as we're dumber than some animals and we get caught in tidal waves.
I'm quite happy to be called an animal. I want to get right in to my animal instincts, find my deep down animal passion. Sometimes I've got there, and it's wild as. Sometimes the stars in the sky sing to you.
I AM AN ANIMAL
@Tuonela
Quote: "Does Mehdi still stand by his belief that all non-Muslims are sub-human animals?"
When and where did he say this?
Both are shifting deckchairs. The issue is how to stop the ship (UK economy) from sinking. I do not hear anything from either of them that will prevent a double dip. How will that master of PR (Cameron) explain that away. Still blaming Labour for the deficit.
@Mel Davis
A quick search on Youtube and you will find what Tuonela is talking about
We've sorted the animal question out. We are all animals, the whole human race! Have a little look at the other animals and notice the similarities.
In fact some animals have extraordinary abilities that we don't have. Dogs for instance can look around corners because of their fine sense of smell. And some animals 'know' the future as they can tell when an earthquake is about to happen. How about that!!!! We can't as we're dumber than some animals and we get caught in tidal waves.
I'm quite happy to be called an animal. I want to get right in to my animal instincts, find my deep down animal passion. Sometimes I've got there, and it's wild as. Sometimes the stars in the sky sing to you.
@ Mr Divine, and what about the 'sub-human' question?
@HappySlayerUK
Thank you. Will do.
You've hit the nail on the head. Labour come across as a party that are relieved not to be in government at the moment and are enjoying shouting about the terrible cuts from the sidelines without taking any responsibility for them or for what they would do differently. This is not a position any intelligent person can support surely?
Let's see a responsible, coherent alternative. Anything less is a derogation of their duties to the people who support them. It's easy to shout abuse from the sidelines, get some Balls and give people an alternative.
Let's see a responsible, coherent alternative. Anything less is a derogation of their duties to the people who support them. It's easy to shout abuse from the sidelines, get some Balls and give people an alternative.
As David Cameron is now finding to his cost. He did quite a lot of yelling from the sidelines when Labour were in power but now the wheels are falling off his awful policies and the public are seeing how he's basically conned everyone to win the election, he now bleating that it's up to Labour to come up with a credible alternative. I'm sorry but he's in the driving seat now and I am still waiting for ONE credible policy from him!
edit: From Chasney H
Let's see a responsible, coherent alternative. Anything less is a derogation of their duties to the people who support them. It's easy to shout abuse from the sidelines, get some Balls and give people an alternative.
As David Cameron is now finding to his cost. He did quite a lot of yelling from the sidelines when Labour were in power but now the wheels are falling off his awful policies and the public are seeing how he's basically conned everyone to win the election, he now bleating that it's up to Labour to come up with a credible alternative. I'm sorry but he's in the driving seat now along with Osbourne and I am still waiting for ONE credible policy from them!
It's beyond me how anyone could use the word "just" in a sentence containing the words "twenty four billion pounds" and not understand the sense of gnawing horror which it engenders in normal people.
Why does the New Statesman have such difficulty drawing conclusions?
Labour plans are for cuts.
Tory plans are for cuts.
Liberal plans are for cuts
New Statesman conclusion: They're all doing it wrong.
Surely the most obvious fact of this piece is that cuts are necessary to prevent an erosion of debt rating in order to be able to finance the debt over the difficult low growth 2-5 year period.
I know that goes sits rather inconveniently with your narrative of no cuts needed, but it remains a fact. Cuts are required. And required quickly.
anti cuts agenda is inevitable
money becoming worth less as debts hold their value is crazy
@Ehtch Tee"Darling v. Osbourn. There is only one winner, Darling.
Osbourne is a nonse, and a total tool - he has not got a clue, the stupid feck he is."
Wow - now I understand. So good to have such guidance.
Hm - or maybe ET's being ironic???
Lox
But I'm sure in his head he's still a socialist. Just a very well-off one.
----------------
the very idea that Blair thinks he is a socialist is one even he would laugh at.
Are you part of this new group of right-wing apologists, who are trying to blame socialism for the international meltdown of the past three or four years?
It is b-loody incredible how many times I have heard that socialist states are those in trouble. And that the banking crisis was some storm in a tea cup, and that nationalised banking shares will turn a profit.
They may have led to nations bailing out the system, suffering enormous recessions and falling tax receipts, bailing out the economy by running huge deficits, but the banking sector is surging back because deregulated capitalism is just wonderful, and nothing really went wrong. It didn't, look they still make money and get huge bonuses.
We have a world in which governments are going bust after bailing out lenders through quantitative easing, feeding them yet more money to make profits on.
Also bailing out borrowers through enormous deficits and artificially low interest rates to help them pay down debt, bailing out over-stretched mortgage borrowers thru same low interest rates, while banks refuse to foreclose in fear of impact falling prices would have on their balance sheets. All this is heaping up a massive overhang of unsaleable houses at stupid Alice in Wonderland prices.
Meanwhile, as people now have to afford houses to get a mortgage, very few mortgages are given out as houseowners remain in denial that the market was a bubble. It almost brought civilisation down, and may yet do so, but it was simply fair prices, and underlying "supply and demand".
It is a disgrace that this international crisis is not even being debated. People acting like the three monkeys, and instead blaming spending on the NHS for the world's problems. It is fecking insane.
Mel
I don't understand your point? Cameron is in govenment and is clearly carrying out his policies.
Labour are currently just shouting from the sidelines about how terrible cuts are when they have agreed to make cuts worse than Thatcher themselves.
Labour currently have zero credibility. They need to set out the alternative or accept there isn't one. At the moment the overiding impression is one of the Labour party seeming relieved they are no longer in government.
It is not possible to respect this approach. At least Cameron and the Tories and Clegg and the LDs are dealing with the problems facing the country head on.
Labour policy = moan about each individual cut (despite promising to make cuts worse than thatcher) and as the government becomes unpopular then reap the reward. Are there any other policies? Not at the moment.
Labour just don't seem to want to be in government for another 4 years, when all the difficult decisions have been dealt with. Pathetic.
'...it remains a fact. Cuts are required.'
No. Cuts aren't required. In fact, cuts aren't even required even if you believe the national debt is the key priority at the moment--over jobs, over growth. You can take care of the debt by (a) moderate inflation, and (b) tax rises on the wealthiest. We keep getting told that tax rises on 'wealth earners' will hurt the UK; but what about public sector cuts for everyone else? This will do harm--perhaps irreparable harm--to the vast majority, especially if it results in lower growth and lower job creation, and social dislocation. Or do you think 20 years after Thatcher that the regions most negatively affected by her policies ever recovered?
There's also the wider philosophical question: WHY do we need to finance public spending through public debt? Remember, the UK has its own currency, created by the government, and its liabilities, such as they are, are in its own currency. There is no theoretical limit to the amount of money it can spend to make up for a shortfall in receipts--or to pay off the debt. No, the problem isn't whether the UK will be able to finance itself; it's whether such policies will result in mass inflation if taken too far. But this route is a credible alternative to debt financing. The notion that governments are constrained in their own financing in their own currencies, or beholden to debt in their own currency is simply ludicrous.
There are actual alternatives to the cuts: shifting the pain over to those who can deal most effectively with it, coupled with a few years of higher-than-normal inflation (i.e. in fact at levels only slightly below where the country is now) to reduce the real burden of debt, and in the longer-term moving from an antiquated financing system--one which pretends that countries are contrained in printing currency so as to empower rent-seekers.
Darling v. Osbourn. There is only one winner, Darling.
Osbourne is a nonse, and a total tool - he has not got a clue, the stupid feck he is.
All government promises are political plans on political timetables. How could they be otherwise ?
Entire election manifestoes are political promises to be enacted within the next five years.
If Darling had said "we realise that we are running a sizeable deficit and we will deal with it appropriately over the appropriate timeframe" he'd be quite rightly ridiculed.
That doesn't mean there can't be flexibility to tweak your plans as circumstances develop but you at least need to set out a plan.
Hence the equally ludicrous complaints about Osborne being wedded to his economic plans. He's clearly tweaking them as circumstances change.
Until Labour manage to throw out their insane right-wingers (the "we need cuts" and "some cuts are okay" brigades) and refuses to stand with the hundreds of thousands of people in fear of losing their jobs, their benefits, or their life-critical essential services, then they deserve nothing more than contempt.
The deficit will be removed naturally by growth so long as the economy is stimulated by capital investment, and in the current economic climate only the Treasury can afford to make that investment. Attempting to slash the deficit will contract the economy and prolong the misery.
Don't cut the deficit. Let the national debt increase. Let debt interest costs increase. Less tax money to spend on public goods and services. More debt for the current and next generations to pay. Less investment, less growth etc.
Hi Elrob, who's apologizing for anything? I didn't say Blair was a socialist-and I didn't imply it. I think you inferred it-for what? For implying that Alastair Darling is a hypocrite?
I don't blame socialism for the economic crisis-in the UK, I blame an inept social domocratic government that didn't have the balls to let banks fail.
Didn't Darling say that their deficit reduction would be implemented once growth was robust.
Osborne is doing it while the economy is contracting. Suicidal!
Stop being such a groupie, Ang. Darling was a better chancellor than Brown was a PM, and that's pretty faint praise. Incidentally, while you might like to describe Osborne as a toff, Darling-like Blair-was educated at one of the top Merchant's schools in Edinburgh. He also owns a holiday home in one of the Western Isles-where absentee ownership is draining communities of their youth. But I'm sure in his head he's still a socialist. Just a very well-off one.
Let's see a responsible, coherent alternative. Anything less is a derogation of their duties to the people who support them. It's easy to shout abuse from the sidelines, get some Balls and give people an alternative. http://www.trainingforcnacertification.org/cna-training-in-california/
Does Mehdi still stand by his belief that all non-Muslims are sub-human animals?
I look forward to any replies that do not offer 'out-of context' excuses - the context of the recorded damnation was quite clear. The same goes for any pathetic attempt to obscure Medhi's statement with a semantic interpretation.
Don't cut the deficit. Let the national debt increase. Let debt interest costs increase. Less tax money to spend on public goods and services. More debt for the current and next generations to pay. Less investment, less growth etc
@Mel Davis: Subhuman; animals that are below man. How are these animals 'below' man? How do we determine intelligence? Walking down to the beach to see the tide rapidly withdraw or fleeing from the coast before the earthquake actually happens? What use is 'intelligence' if it results in our death? At times it is better to have instinct than curiosity or literacy.
This whole idea of man being greater than other beings and other men is all tripe. And when you hear people talking about 'sub-humans' you know that they have had an poker stuck up their conceited arse.
That's why my bum hurts now.
'Halving the deficit over four years is a political decision on a political timetable; it has nothing to do with economics.'
What utter rubbish. Have you ever heard of the Bond Market? That's the place where our pension funds make decisions about who to invest in and who to avoid.