In the most unpredictable election for a generation, there is one certainty. Whatever the result, the nation will wake up on May 7 to confront the economic reality which, until the last television debate and publication of the Institute for Fiscal Studies report, had figured as the elephant in the room as party leaders honed their game of three-way charades. Now, in the last few days, the campaign is ending where Tribune throughout has maintained it should: on economic credibility.
The Tories shredded much of theirs in calling the wrong solution to the recession by advocating a course towards depression rather than recovery. The IFS says that the pace of proposed Tory cuts threatens to wreck recovery within the first year of a David Cameron administration with the biggest programme of cuts since the Second World War. The practical effect of the Tory ideology is demonstrated by George Osborne’s invitation for us to “look and learn from across the Irish Sea”. The Irish austerity plan was a failure on all fronts and the country ended up worse than where it started. Even Ken Clarke – a figure, unlike Mr Osborne, who is taken seriously by economists and the City – effectively buried the Shadow Chancellor when agreeing that the Government was right to nationalise Northern Rock. Mr Osborne has stated that that was the day Labour’s reputation for economic competence died.
A do-it-yourself Britain would be turning the clock back. While Labour and the Liberal Democrats are described by the IFS as more “progressive” in their plans for dealing with the deficit, they too have much explaining to do. Nick Clegg is unable to explain to poorer families and their children why saintly, and sidelined, Vince Cable wants to make them worse off with his tax changes. Gordon Brown stands behind the most cleverly-turned sound cloud with “in the middle of an economic hurricane we don’t make detailed weather reports”.
But in reducing the fiscal deficit – as capitalist needs must – there are some sturdy shelters that Labour should be erecting to protect the most vulnerable from the storm. Start with the banks. Lloyds – 41 per cent owned by taxpayers – has announced it is back in the black for the foreseeable future.
Good, that’s why the banks were bailed-out.
But, in a recession especially, they should not be handed back to an irresponsible private sector. Public ownership of all bank assets should continue, to ensure they become economic engines for the greater good rather than the parasites they became. A stop should be placed on the continuing obscenity of bonuses, £6 billion of which were allocated last week while workers whose taxes saved the banks are promised job losses, pay cuts and higher taxes.
The biggest and least painful cut should be the billions wasted on the American lend-lease deal which is Trident. These are policies to be wished for, but if it is the fairest way of dealing with the crisis ahead you seek, there is but one option: vote to keep out the Tories. Vote Labour.
