We are facing triple dip recession. Even the ultra-conservative IMF has advised Osborne to change course. Like an ostrich, with his head in the sand, Osborne bleats, 'Recession, what recession.' Isn't it time the Lib Dems did something REALLY for the nation. Dump the Tories, precipitate another election and let people decide whether they want to continue to be martyrs to Osborne's austerity mantra. Or elect a Government that will help people to get the economy going.
Osborne's economic policy is barmy gradually leading this country to junk status. You cannot pay off a massive loan just by reducing spending and toiling on fixed income but by improving earnings and reduce spending.
Osborne's is an economic policy driven by what his rich friends whisper in his ears and psychosis of bankruptcy. Balance the books and phobia of borrowing.
But borrowing is the engine of modern economics. Good businesses borrow to invest in expansion, increase market share and plans to make more money. Bad businesses borrow to buy luxury cars for directors while still waiting for a profit.
Sensible governments borrow to invest in economic growth. Profligate Governments borrow to buy votes. Unimaginative Governments balance books, without progress.
There is no denying that the last Labour Government borrowed too much with an eye on votes rather than economic growth. It bloated its own spending and gave away a lot of unnecessary grants, social welfare money etc. The only growth it relied on was the financial sector's magic mushroom money. Even Brown has admitted that belief in the financial sector was a big mistake.
But that is no reason to go into a bunker mentality. Of course Government spending needs to scale down dramatically, particularly where spending adds nothing of real value. Government needs live within its means.
But at the same time, the Government NEEDS to borrow to invest in REAL growth. It needs to borrow like any business, to encourage growth in innovative industry, to encourage new enterprise sectors, to enhance skills and to promote consumer spending through infrastructure projects. It needs to increase employment to reduce welfare burden.
Even non-economist can see that. IMF sees that. Now Goldman Sachs sees that. But Osborne is waiting for the rich to come in with infrastructure projects, new enterprises and so on.
He was naïve to rely on his rich friends to drive economic growth. Yet after two years, he still believes that. Money does not do 'nationalism' even if nationalism does currency. All the rich want is less taxes and have more to invest where ever there is the maximum profit in our globalised world. Paying back the nation by investing here is not in their wish list.
The Lib Dems finally realise that after two and half years in the coalition. At least that is what Clegg seems to be hinting at. Clegg said he formed the coalition 'in the national interest' of the nation. Six months ago, he said that he made compromises, 'in the interest' of the nation. Now reality faces LibDems in the face.
People are suffering; children are undernourished living in poverty. The country is standing still. Meanwhile we have a Chancellor competing with 'mules' and a Prime Minister driven by UKIP, obsessed with the European behemoth. It is no longer 'in the best interest' of the nation to continue with this sclerotic coalition.
Lib Dems should now call it a day with this Government and try and form a coalition with Labour, or precipitate an election in the hope of a coalition with Labour. Whatever Ed Ball's mistakes in the Brown era, once the financial crises faced the country, he did change his thinking. He has been consistent in the last two years. 'Reduce deficit slowly, borrow to invest in growth'. That is exactly where Clegg is now.
People want to work. Britain needs a Government that will make it possible for them to work. It is up to the Lib Dems to take the boldest step in the 'best interest of the nation'.
Follow Jasdev Singh Rai on Twitter: www.twitter.com/JasdevRai