What exactly is Conservative economic policy?
I’m simply not clear on Conservative economic policy in relation to government debt.
Why is Cameron saying one day to business leaders that there is no need for big cuts in the first year of a Conservative government, while on the very same day one of his top MPs is going on about the ‘need to get to grips with public finances now’?
Why is there a commitment to an emergency budget if there are aren’t going to be any significant cuts? Would such a budget simply be about reducing corporation tax and therefore increasing the deficit?
Well, there is a track record for such economic stupidity by the Tories.
Under Thatcher, cyclical borrowing costs caused by the Tory response to recession – itself largely driven by fear of how the markets might respond – continued to ensure that the structural budget deficit continued at more or less the same level for a further four years beyond the actual recession (see the graphs at page 7 of this IFS report).
And the Tories are trying to instill economic confidence with international investors? Gawd help us.