Mark Carney: spending cuts have been "a drag on growth"

The Bank of England governor tells MPs what George Osborne doesn't want you to hear.

The most politically significant moment during Mark Carney's apperance before the Treasury select committee came when the Bank of England governor stated that "fiscal adjustment" (spending cuts and tax rises) "has been a drag on growth". 

This might appear to put him at odds with George Osborne who in his speech on the economy earlier this week, derided the "fiscalists" who claimed that the cuts had been more damaging than expected. But the Tory Treasury Twitter account has responded by stating that Carney's comments are "consistent" with Osborne's argument that the OBR's 2010 fiscal multipliers (which measure the effect of cuts and tax rises on growth) were not too optimistic. 

The Treasury did, however, refuse to concede that the cuts had, at least to some extent, depressed growth. As David Cameron was reminded by Robert Chote earlier this year (when he suggested that austerity had not hit output), the OBR's multipliers assume that "every £100 of fiscal consolidation measures reduce GDP in that year by around £100 for capital spending cuts, £60 for welfare and public services, £35 for increases in the VAT rate and £30 for income tax and National Insurance increases". Fiscal consolidation is estimated to have reduced GDP by 1.4 per cent in 2011-12 alone.

Cameron and Osborne are understandably reluctant to admit that the cuts mean growth has been lower than in normal circumstances. It allows Labour to argue that a less aggressive deficit reduction plan would have enabled higher levels of output. Which explains why you can expect Ed Balls and Ed Miliband to leap with glee on Carney's quote and the Tories to try and act as if they never heard him. 

Mark Carney, governor of the Bank of England, during a press conference following an address to business leaders in Nottingham on August 28, 2013. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

Twitter/@suttonnick
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From "cockroaches" to campaigns: how the UK press u-turned on the refugee crisis

Harrowing photos of a drowned toddler washed up on a Turkish beach have made the front pages – and changed the attitude of Britain's newspapers.

Contains distressing images.

The UK press has united in urging the government to soften its stance on the record numbers of people migrating to Europe. The reason? A series of distressing photos of the body of a three-year-old Syrian boy, face down in the sand on the Turkish coast.

Most papers decided to run one or more of these pictures on their front pages, accompanying headlines entreating David Cameron to take notice. While your mole wholeheartedly supports this message, it can't help noticing the sudden u-turn executed by certain newspapers on the subject of the refugee crisis.

First, they used to call them "foreigners" and "migrants" (a term that has rapidly lost its neutrality in the reporting of the crisis) who were flooding Europe and on the way to "swarm" the UK. Now they've discovered that these people are victims and refugees who need saving.


 

Photos: Twitter/suttonnick


The Sun went so far as to run a column by Katie Hopkins five months ago in which she referred to them as "cockroaches" and "feral humans". She wrote:

Show me pictures of coffins, show me bodies floating in water, play violins and show me skinny people looking sad. I still don't care. Because in the next minute you'll show me pictures of aggressive young men at Calais, spreading like norovirus on a cruise ship. Make no mistake, these migrants are like cockroaches.

Photo: Twitter

Now the same paper is urging the government not to "flinch" from taking in "desperate people", those in a "life-and-death struggle not of their own making":

Photo: Twitter/@Yorkskillerby


And the Daily Mail still seems confused:

 

It's not really the time for media navel-gazing, but perhaps the papers that have only just realised the refugees' plight can look closer at the language they've been using. It may have contributed to the "dehumanising" effect for which Cameron and co are now being condemned.

I'm a mole, innit.