This post is quite late coming, very late in fact, but better late than never. Almost a month ago now, the Office for National Statistics produced the digits for the last quarter. It was good news, very good, the British economy grew by 0.8%, although lower than the 1.2% in the previous quarter, still double the 0.4% predicted. The Chancellor hailed this as proof that his economic plan was working, that the economy was responding positively to the Coalition’s budget.
The praise, however, was not his to take- the majority of growth occurred under the last Labour administration, so in realiy, it is proof that Alistar Darling’s budget was working. Economists, including all Nobel prize winning economists, agree that this growth created by Labour it now “tailoring off” and is only more solid proof that the current Government is taking un-necessarily harsh cuts. The jury is still out on that one, only time will tell whether the Coalition’s budget will cause the economy to expand fast enough to suck up all the redundancies and heal those who will be losing DLA.
The question we can ask now though, is why did the current Chancellor tell the British public that their country was close to bankruptcy? Why does the Coalition claim that the country was in such a bigger mess than they thought that they broke election promises only weeks after taking office? The truth is that the country was £10billion better off than anticipated, as was the economy, it was growing faster than predicted. There’s a lot left up to interpretation in economics but these are bare facts which speak for themselves and are in direct opposition to what the Government is saying. You cannot help but agree that the Government has tried to scare their citizens so that they will accept the cuts, the broken promises and believe that their way is the only way.