THE BLOG
04/11/2013 08:14 GMT | Updated 23/01/2014 18:58 GMT

There Is Something Wrong With Osbornomics

Don't you just love Tory Britain? It seems that everyone except big business and the most affluent should bear the brunt of austerity, a botched economic theory which has failed whenever it has been applied. While ordinary folk are suffering from austere Osbornomics, the rich and big business are rubbing their hands with increased profits and bonuses.

Don't you just love Tory Britain? It seems that everyone except big business and the most affluent should bear the brunt of austerity, a botched economic theory which has failed whenever it has been applied. While ordinary folk are suffering from austere Osbornomics, the rich and big business are rubbing their hands with increased profits and bonuses.

Money is now being diverted from the 'plebs' and is now being distributed to multinational big business and the extremely wealthy. Benefit cuts, pay freezes/cuts and increased cost of living all taking money out of the bank accounts of ordinary folk while profits, bonuses and tax cuts are being sprinkled on the rich and big business.

The Government squeal with the delight at the news that GDP has risen a measly 0.8%. They lecture the 'plebs' that the 'tough medicine' is working. Yet this growth is not making the lives of ordinary families more prosperous. We see food prices rocket, we see vital services withdrawn, we see energy and fuel increasing at an astronomical rate but at the same time we see our incomes stalled or cut due to Government policy. GDP is irrelevant to most people until incomes have caught up with the cost of living. But that will not happen under this Government.

There is something wrong, seriously wrong, with Osbornomics.

There is something wrong when CEOs of energy firms are making millions in bonuses when their customers face a cold winter, unable to pay the energy bills.

There is something wrong when a multinational can hold their workforce to ransom, imposing crushing changes to pay and conditions while demanding and receiving £134M from taxpayers in subsidies.

There is something wrong when the financial sector, whose reckless behaviour drove the UK into the longest and deepest recession for 100 years yet they still receive £375BILLION via Quantitative Easing.

There is something wrong when the Government bestows the richest a tax break in the same week as the implement vicious cuts to welfare.

There is some wrong when 6.1 million citizens work hard all week but are still in poverty.

So what is the answer? I think that house building and infrastructure regeneration is one way to provide real and tangible growth. And it is a view shared by the CBI. If we initiated a house building and infrastructure regeneration program on that scale of the expert's wish then we would create jobs, boost the local economy while ensuring that the nation's infrastructure can cope with the demands of the future.

It makes economic sense to invest in new housing. For every £1 invested in building new homes £3.51 is generated in economic output, which is a far higher return in the investment that other sectors including the advanced manufacturing and the financial sector. From that £1 spent in building, 92p stays in the UK and 56p returns to the Exchequer.

Building homes and infrastructure regeneration would increase the job market of the local economy. These additional jobs would increase the amount of money in the pockets of customers. This money would be spent on goods and services which would then increase profits. More profits to local businesses means more jobs and the cycle continues.

We need a Government whose economic plan looks beyond the City of London and the financial sector. We need to diversify our economy so that our nation is not over-dependent on one sector. Investment in housing, infrastructure regeneration and hi-tec manufacturing would provide sustained employment for the many.

Investment, rather than punitive measures, for the unemployed would result in a highly trained workforce of tomorrow. Our nation's workforce, which is often disparaged by some facets of the press, is seen as a huge asset by those overseas. This asset should not be left to rot but should be supported in tough economic times.

But sadly, these thoughts do not even cross the mind's of Osbornomics supporters. The neo-liberal ethos of profit, profit and more profit does not accept proposals that increase the wealth of ordinary folk. Certain commentators will write this article off as 'jealously' of the rich but I do not want the rich to be punished. I want equality in rough economic times. Is that too radical for modern politics? Or is it just not the Osbornomical way?