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David Rowntree

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The Osborne-Shaped Hole

Posted: 14/02/2012 00:00

It may seem like another age now, but it was only a year ago that you couldn't read a newspaper, or watch a news programme, without seeing George Osborne's sallow face peering back at you. It was as if he was the poster-boy, not just for Cameron's 'brave' new experiment, but maybe even for the entire Tory party.

But these days there is an Osborne-shaped hole in the news where the Chancellor used to be. The only time we see him is when he pops briefly into view to mumble an excuse as to why the economy is someone else's fault, before disappearing again in a puff of politics.

A couple of weeks ago, the Office for National Statistics released their latest economic figures. They showed that the UK economy was still shrinking - down by 0.2% in the last quarter of 2011.

*POP*

"They are not entirely unexpected because of what's happening in the world and what's happening in the eurozone crisis."

(George Osborne on BBC News)

*PUFF*

It's not much of an explanation, and you don't have to look far to find other economies facing the same challenges, but achieving different outcomes. The US, for example, grew by 0.7% in the same period.

Osborne will have more opportunities to explain himself over the coming months. The next set of economic statistics will show whether or not the UK has fallen back into recession, the generally agreed definition of which two consecutive quarters of shrinking GDP.

Of course it's an arbitrary indicator; there's no particular reason why it has to be two months, or why they have to be consecutive. But equally that wouldn't mean that the underlying economic weakness suggested by a double-dip wasn't serious, and the main argument against the government's economic strategy is that it causes, rather than addresses, that underlying economic weakness.

If Osborne disagrees, then he must explain not only why his policies are failing to deliver the growth and recovery he promised, but also why our economy is grinding to a halt, while the rest of the world is getting itself back on track.

Another round of 'Pop Goes the Chancellor' simply won't do.

 

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It may seem like another age now, but it was only a year ago that you couldn't read a newspaper, or watch a news programme, without seeing George Osborne's sallow face peering back at you. It was as i...
It may seem like another age now, but it was only a year ago that you couldn't read a newspaper, or watch a news programme, without seeing George Osborne's sallow face peering back at you. It was as i...
 
 
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06:43 PM on 02/20/2012
Georgie Osborne Pudding and Pie
Robbed the poor and made them cry
When the Unions came out to play
Georgie Osborne ran away....

But Dell Boy Cameron of the Eton Mob
Told young Georgie to zip his gob
Keep it quite, so they won’t grieve
So Nation won’t notice all we thieve.....

Georgie Osborne Pudding and Pie
Started to steal from you and I
Robbing the poor to keep the rich
His Tory principles long ago ditched....

Then young Georgie of the Eton crew
Asked his mentor what he should do
Thatcher screamed at Pudding and Pie
“Kick the disabled until they die”
“ Make the whole Britain out of work”
“Get on with it you stupid jerk”

Then the riots and burning in the streets
Forced the Coalition into a fast retreat
A General Strike did its work
As the Nation kicked out these stupid jerks....

Peter Wicks
11:16 PM on 02/19/2012
Well perhaps the author would prefer Mr. Ball’s alternative strategy - spend more of the money we don’t have (in no small part due to our profligacy whilst in government during a time of plenty) and hope that the credit rating agencies don’t notice. Or to give it sleeker title – cuts not far enough and nowhere near fast enough.
05:35 PM on 02/19/2012
Correct me if I'm wrong but isn't Germany slipping back into recession? The author seems to think that yet MORE public spending is the answer. Sure it's working to some extent in America but Obama is leaving a massive millstone around the US tax payer that will have to be paid for at some time.

We can't afford that sort of millstone, where Osborne is wrong is he needs to cut taxes and yet he should pay for it by cutting public spending, anyone who believes the rubbish pumped out by the BBC that public spending is being 'slashed' is a moron.
01:21 PM on 02/19/2012
Typical far left attention seeker.

Under Labour we had 4 million on welfare before the labour credit crunch. When Labour left office we had 0.5% growth and 5.3 million on welfare.

The economy and unemployment we have now is Labours.

I dislike conservatism but the far elft Greek style borrowing and taxing has always failed, and always will.

Germany, Sweden, Switzerland and Norway did not borrow or raise taxes, they have done fine.

Rule number one of eocnomics...Do not borrow and raise taxes it never works.

Unemployment brown and his close personal friend Fred Goodwin should take full blame for the porblems the UK has.

Osbourne is indeed useless but has failed to solve the problems he inherited.

Now go back to the BBC and campaign for Labour and that License fee rise. Off you go.
09:58 AM on 02/19/2012
WHY DIDN`T YOU COMPLAIN WHEN BLAIR AND BROWN WERE BANKRUPTING THE COUNTRY.THE ALLIANCE TOOK OVER A BANKRUPT COUNTRY;THEY ARE TRYING THINGS BUT HAVE ONLY A LITTLE FLEXIBILITY.LABOUR ACTIVISTS REMIND ME OF REFORMED ALCOHOLICS
10:27 AM on 02/15/2012
the tim nice but dim act doesn't wash when credit agency Moodys expresses concerns that your lack of growth is causing more borrowing than the cuts are saving. There is not a lathe in the country that could turn the Osborne square peg into a Chancellor fit for purpose.
11:38 AM on 02/14/2012
The Osborne shaped hole is filled by useful idiot Danny Alexander. In the unlikely event we get some good economic news before 2015 George Osborne will reappear.
10:24 AM on 02/14/2012
I've got an Osborne-shaped hole. And it's in my bottom.
11:06 AM on 02/14/2012
Cheers - vary tastefully put. I've been working on that one but I knew they would never publish what I wrote.
01:49 AM on 02/14/2012
Mr Osborne, if you take a peek over the pond you will see the beginnings of a recovery based on sound plans and firm action, despite all the political rubbish being thrown about in the lead-up to elections. (who needs politicians anyway?) The energy industry is striving to find more gas to reduce energy costs (and pollution) and contribute to making western manufactured products more competitive (than the Chinese and others in the East). Stop fussing around the discredited (and dishonest) financial services industry and find us ways to compete in the world (not just the EU) which will employ our people!