October 2021
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Stupid fool Osborne gives us the wrong kind of austerity – that’s why he’s so useless

Hopefully you all have well-paid jobs and busy, interesting lives and so don’t have time to keep up with the obscure details of a vicious little spat developing between our hopeless, hapless chancellor and the equally hopeless IMF. So, I’lll summarise briefly:

A few years ago, a couple of US economists, Ken Rogoff and Carmen Reinhart, did a study which, they claimed, showed very high state debts were a cause of low economic growth. This study was used by pointless Osborne to justify his policy of reducing Britain’s deficit. Recently some other economists have allegedly shot a few holes in the Rogoff-Reinhart theory and this has allowed the delusional Ed “borrow-borrow” Balls to claim Osborne needs to ramp up spending by borrowing more. In fact, this whole discussion is meaningless as the way GDP is measured includes government spending. So if a government borrows and wastes a lot of money (Gordon Brown), for a while (until it goes bankrupt) it will look like there is economic growth.

In addition, the IMF, having previously supported Osborne’s plans to reduce the deficit, now says Osborne is wrong and needs to borrow and spend more. This is the same IMF that has imposed such drastic austerity on countries like Spain, Portugal and Greece that unemployment there has gone above 25% and youth unemployment is above 50%. These countries are now in a recessionary downward spiral where shrinking GDP leads to higher unemployment leads to lower tax revenues, leads to higher borrowing, leads to lower spending leads to higher unemployment etc etc

So, over the coming days we can expect lots of heat and fury (but little light) from politicians and journalists and other “experts” about whether we need more austerity or more spending.

But I think they’re missing the point. The real problem with useless Osborne’s plans is that he’s given us the ‘wrong kind of austerity’. Osborne has made major cuts in productive capital spending – building houses, schools, roads and so on – spending that creates jobs and contributes to real growth. At the same time, pointless Osborne has protected wasteful spending – spending that does nothing to stimulate growth. For example, he and Cameron have massively increased spending on the political classes – 117 Cameron cronies have been put into the Lords, expenses rules for MPs have been relaxed so they are now claiming on average £40,000 a year more than they did before the expenses scandal broke and over £80m was wasted on Clegg’s AV referendum. They have increased the cost of bureaucracy – £2m for the worthless Office for Budget Responsibility, another £2m for the equally disastrous Office for Tax Simplification, pay for bureaucrats has kept on rising, thousands of bureaucrats have been given 6-figure pay-offs only to return to their jobs a few days later as highly-paid consultants, many quangos have increased their spending by 30% or more since the 2007/7 crash, this year we’ll spend £70m on the laughable Equality and Human Rights Commission and so it goes on.

The real issue is not more austerity versus less austerity. The problem is that Osborne has protected the bureaucratic and political elites so our money keeps pouring into their pockets and pensions, while cutting the spending that creates useful jobs. What a buffoon, what a fool what a…….but hold on, Ed “borrow-borrow” Balls will be our next chancellor. Compared to him, useless Osborne is an economic genius.

1 comment to Stupid fool Osborne gives us the wrong kind of austerity – that’s why he’s so useless

  • Paris Claims

    Several years ago Ken Dodd was in court for Tax Evasion. In his defence his council claimed he was clueless regarding financial matters, kept his cash in brown paper bags under the bed. Screaming Lord Sutch immediatly announced he was going to offer Ken Dodd the position of shadow chancellor in the Official Monster Raving Looney Party.
    He couldn’t have done any worse than the last three we’ver had to suffer under.

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