There are initiatives by the day as the economy spins out of control. Has New Labour finally lost it’s way? Well I think so. There is no strategy, just initiatives to try and keep the patient happy while the recession takes hold.
Is there any real help being offered? No , just proposals to give the impression that Brown is doing all he can. But it is very little.
The truth is that recession has caught Brown on the hop. Now the initial euphoria has died down, and the “save the world” mantra has backed fired, there is little that Brown can do but hope.
His overriding concern is what to do about the election, when to hold it and how to achieve victory. And of course how to leverage off Obama. The reality is the electorate is more concerned about job security, falling house prices and future financial provision.
What to do. What to do. Has Brown got a clue? He is at the mercy of events as never before.
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I think it has dawned on Brown that the event must run its course.There is no intervention that can make any real difference. Our economy is about 70% dependent on the consumer. The consumer does not want or need credit. He needs to and will build up his savings. This will take two years. In meantime the £20bn loan plan to be announced will simply keep businesses afloat a liitle longer before they go belly up. Their customers nare not buying but saving so fruitless exercise to give them money.
ReplyDelete10 years of leveraged binge consumption. The necessary remedy is massive contraction.