26 Nov 2008

Political Fiddling

Brown and Darling sadly opted for the short-term 'fixes' once again this week in their rescue package for the UK economy.

One of the fundamental reasons why we are in such a mess economically is because the UK has spent more than it could afford for the last decade - consumers, businesses, banks, pretty much everybody.

So, what's a good solution ? I know, let's cut VAT by 2.5% to try to convince people to carry on spending (on imported goods).

There is no doubt that there needs to be action to try to reduce the risk of the economy sliding into a very prolonged recession, or even depression, but we need strategic investment to make our economy more sustainable over the long term, not throwaway gimmicks to convince us to spend, spend, spend.

Mr Brown has assured us many times over the last decade that the cycle of boom and bust is over in the UK. We now know that this was not true. Would it be too much to ask our political leaders to admit when they were wrong, and start to try to fix the problems properly rather than treating the electorate like fools ?

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