Unlike other countries engulfed by the global contagion which marks the potentially terminal sickness of “virtual capitalism”, Britain’s increasing plight is home-grown, deliberate and, in large part, avoidable.
In the midst – no, the beginning – of what Bank of England chief Mervyn King describes as the worst crisis ever, jobs are cascading out of existence, businesses starved out of existence for the lack of bank loans or customer demand, cherished and vital services are disappearing under spending cuts; a continuing banking crisis sees yet more millions of taxpayers’ money thrown at it while we await to see how much of the latest “quantitative easing” makes it into the real economy; there is no growth, no demand and no answer to a worsening, far from improving, deficit.
The number of jobs in the public sector lost since April is a staggering 50 per cent higher than the forecast by the Office for Budget Responsibility for the entire fiscal year (see page 3). That is 200,000 more than expected, each one costing an estimated £8,000-£10,000 in benefits and taxes lost to the Exchequer. The fairy tale pick up of jobs by the private sector is not happening because employers either cannot or, in a climate of fiscal fear, will not invest. The Institute for Fiscal Studies reports that average households have lost 7 per cent of income, with the poorest hit hardest.
And the Government? While David Cameron and Nick Clegg continue to talk risibly of “aspiration” and “social mobility”, Chancellor George Osborne stubbornly continues to proclaim that there is no alternative. Even pensioners and savers are being caught in the maw of Government policies which hit them hard.
All in all then, a propitious time for Labour to present a radical alternative to chime with the aspirations of the millions who are suffering under this Government’s mismanagement of the economy. Shadow Chancellor Ed Balls has already dismissed as unnecessary the speed and depth of the cuts and outlined a five-point plan Labour would implement which would create housing, jobs for the young, consumer demand, growth and a bonus tax.
Mr Balls is one of Labour leader Ed Miliband’s strongest Shadow Cabinet players. Now, with the reshuffle of his own choice he has more. The reshuffle has disappointed many, including Tribune readers, who saw it as an opportunity to be more brutal, more tribal, in removing Blairites from his top table. That is the politics of the past Mr Miliband has already expunged. True talent, if not a preferred political pedigree, has been promoted.
Now is the time for Labour’s voice to be heard. If lack of unity and discipline prevent that, it may never be heard again.
