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The Janus faced coalition.

July 14, 2010

For weeks I have been trying to write a post, expressing how I feel about this coalition, and the difficulties in opposing them. Anyhow- Jonathon Freedland does it way better.

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2 comments

  1. Saw your mention in the paper. It needs to be realised that the reason the cuts are occurring is due to the previous government spending 25% more than they were bringing in in tax revenues.

    As a nation we cannot live on borrowing money to fund spending. If we don’t sort out this mess (and it’s a HUGE mess) then Sterling will collapse, interest rates will be 20%+, the housing market will totally collapse (it likely will anyway), the banks which are all leveraged on the housing market will again collapse, lending to businesses will completely stop and we’ll be in an economic endgame.

    So lib dem, tories, labour, whoever. The fact is we need to make massive cuts to public spending. The private sector reacted rationally to the recession, it’s time for the public sector to follow suit.


  2. I disagree with your analysis.

    The real reason for the recession is a collapse in revenue due to economic activity collapsing in the autumn of 2008. There’s a choice of whether you raise taxes or cut spending.

    If everyone cuts at the same time – you get the paradox of thrift, where individually rational actions cause systemic collapse.

    Ireland’s already in a pattern of cutting, defaulting and cutting again – we don’t want to go there.



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