Sunday, January 30, 2011

The Logic in Balls Denying Reality

The appointment of Ed Balls as shadow chancellor means that deficit denial becomes the central economic policy of the Labour Party. In essence both the Eds intend to argue that it was the banking crisis and only the banking crisis that caused the deficit. In taking this policy direction they repudiate the more sensible realistic policy followed by the last Labour Chancellor, Alistair Darling.

It also flies in the face of statements made by Tony Blair in his memoirs and as recently as last Friday at Davos. Since Balls isn’t an idiot we have to ask ourselves: why is he trying to deny reality? Does he think the voters can be convinced that overspending wasn’t a problem until the banking crisis? Here he is telling Andy Marr there was no structural deficit under Labour:

Clearly both the Eds think they can blame it on the bankers, popular understanding of the deficit is hazy. The huge one-off costs of bailing out the banks and the constant government-debt-bloating-deficit are confused in the popular consciousness. Even the debt and the deficit are confused in many people’s minds. Whenever Ed Miliband is cornered on spending or taxes he reaches for the banker bogeyman – tax them more and it will sort everything out. None of this adds up to anyone with any financial literacy, which unfortunately is a minority of voters, the majority of voters do blame and detest the bankers.

For this argument to make sense of course requires Ed Balls to deny that there is, or ever was, a structural deficit that had to be tackled. Which is exactly what he did on the Marr show today.

Denying the deficit and blaming the government’s debt crisis on the bankers is an attempt to absolve Brown, Balls and the Labour Party of the blame. It thus allows Balls to claim that, since there is no structural deficit, the cuts are unnecessary and ideological. Which is exactly what he does.

The problem for Balls is that the public senses innately that the government under Brown’s chancellorship and premiership was overspending. If Osborne can keep that national memory alive over the next three years the public will forgive him doing what is necessary. If they forget, or prefer to believe Ed Balls’ claim that cuts are not really necessary, they will blame the government for the coming hardships. The deficit blame game will have to be played until the next election.

Quote of the Day

George Bush said

“Are the peoples of the Middle East somehow beyond the reach of liberty? Are millions of men and women and children condemned by history or culture to live in despotism? Are they alone never to know freedom and never even to have a choice in the matter?”


Seen Elsewhere

Guardian April Fools Apology | Press Gazette
Jenni Russell and Her Child’s Godfather, Ed Miliband | Breitbart
Labour’s Left and Right are Growing Restive | Staggers
Corrupt, Incompetent UN Has No Right to Lecture Us | Dan Hannan
Mirror’s Lazy Lie | Guardian
Hungary’s Heir to Thatcher | Conservative Woman
Farage and Salmond Both Want Outopia | David Aaronovitch
More Missing UKIP Money | Times
Church Should Fight Evil of Welfare Dependency | Stephen Glover
1 in 16 Pick Up Infections in Filthy NHS Hospitals | Mail
Let’s Get Evangelical | David Cameron


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Rod Liddle on the loony UN sexism special rapporteur:

“There is more sexism in Britain than in any other country in the world, according to a mad woman who has been sent here by the United Nations.

Rashida Manjoo is a part-time professor of law at Cape Town University in the totally non-sexist country of South Africa (otherwise known as Rape Capital Of The World).

Mrs Magoo has been wandering around with her notebook and is appalled by the sexist “boys’ club” culture here, apparently.

I don’t doubt we still have sexism in the UK. But is it worse than in, say, Saudi Arabia, d’you think, honey-lamb? Or about 175 other countries? Get a grip, you doolally old bat.”



orkneylad says:

What’s he been doing FFS, mining bitcoins?


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