Sunday, August 31, 2008

Worst slump in 60 years

The government was plunged into turmoil yesterday as the chancellor admitted the full scale of Britain’s economic crisis.

Downing Street and the Treasury launched a desperate damage limitation exercise after Alistair Darling declared that Britain was facing “arguably the worst” slump in 60 years. As Treasury aides claimed that he had been misrepresented, Darling took to the airwaves to clarify his remarks.

However, instead of reassuring voters, the chancellor risked compounding the crisis by failing to modify his dire assessment. Darling insisted it was his duty to be “straight” with people. His warning that the slump will be “more profound and long-lasting than people thought” comes at the worst time for Gordon Brown as he struggles to shore up his leadership.

Others are trying to limit the damage, downplaying the message from the man controlling the money.
We know things are tough and understand that people are worried. But Britain’s economy is fundamentally strong.

This hardly gives activists a morale boost. We are out on the doorstep, trying to reassure people, at the same time as Darling is telling them we are all doomed.

Who is telling the truth at the top of government? It’s not clear whether Alistair Darling meant to tell us the truth about the mess that 10 years of Labour have left our economy in, but he has certainly let the cat out of the bag.

From comments.

Oh dear doesn't a service based economy work? Surprise surprise!!
Having either scrapped or sold off the engine (Design & Manufacture), the economy won't drive fwd.


It is capitalism that builds the house you live in creates the materials that build it, the food you eat, the clothes you wear, the car you drive, the booze u drink, the wealth that pays your pension or dole, the drugs that cure illness and the medical devices that help us.

Says it all. The Chancellor with the figures or those looking to be re-elected?

This has parallels here in NZ and I know who I would believe.


Anonymous said...

A lot of what is going on in the UK parallels the goings on in NZ. Must be to do with having Labour governments! The Oz economy is on the skids now too. Wonder why?

The only country that looks to be surviving this downturn is the USA. Must be Bush' fault!

From the comments, I note that the UK lefties blame Thatcher and Reagan.
(Our equivalent is "reforms of the 80's, 90's, Rogernomics, Ruthenasia" blah blah....


PM of NZ said...

And the lefties continue to blame Nats for their self created economic woes.

You can only keep throwing redistributed money out as bribes to your voters while the non-bribed are still paying.

Something about a golden goose?