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.



Tip offs: 0709 284 0531
team@Order-order.com

GuidoFawkes Quote of the Day

Chuka has been trying to spin the Siemens row:

Chuka Umunna: It’s no different from Sky News quoting a business leader.

Adam Boulton: Except yours says ‘VOTE LABOUR’ at the bottom.

Top Posts This Week

Guidogram: Sign up

Subscribe to the most succinct 7 days a week daily email read by thousands of Westminster insiders.

Facebook

SMART METER PROGRAMME’S DIGITAL ACTIVITY WASTE SMART METER PROGRAMME’S DIGITAL ACTIVITY WASTE
MASK SLIPS FROM GREENPEACE ‘HEALTH CHARITY’ FRONT MASK SLIPS FROM GREENPEACE ‘HEALTH CHARITY’ FRONT
PM Gets Last Word On Thursday PM Gets Last Word On Thursday
FOXY BARONESS’ WEBSITE BORKED FOXY BARONESS’ WEBSITE BORKED
Labour: The Party of Benefits Labour: The Party of Benefits
GOVERNMENT DIGITAL SERVICE BEATS MICROSOFT INTO SUBMISSION GOVERNMENT DIGITAL SERVICE BEATS MICROSOFT INTO SUBMISSION

EUROPOL CHIEF: SNAPCHAT GREATEST TERRORIST THREAT EUROPOL CHIEF: SNAPCHAT GREATEST TERRORIST THREAT
Sky News Ballot Ballad Sky News Ballot Ballad
WATCH: UKIP Pledge Card Revealed WATCH: UKIP Pledge Card Revealed
Mini Wars Mini Wars
OZZIE NUMPTY EMAILS DAVID CAMERON’S PASSPORT NUMBER TO ASIAN FOOTBALLERS OZZIE NUMPTY EMAILS DAVID CAMERON’S PASSPORT NUMBER TO ASIAN FOOTBALLERS
Hell? Yes Hell? Yes
Cameron’s Last Speech in Downing Street (Before the Election) Cameron’s Last Speech in Downing Street (Before the Election)
Free Sun Advertising On the BBC Free Sun Advertising On the BBC
Downing Street Fighting Like Cats and Dogs Downing Street Fighting Like Cats and Dogs
Lucy Powell Falls Apart Under Questioning Lucy Powell Falls Apart Under Questioning
Feminist Jazz Hands Explained Feminist Jazz Hands Explained
WALTER MITTY CV OF ANTI-FRACKING CANDIDATE WALTER MITTY CV OF ANTI-FRACKING CANDIDATE
Cassetteboy v Cameron and Farage Cassetteboy v Cameron and Farage
MICROSOFT SHAKES DOWN PUBLIC SECTOR FOR DOSH MICROSOFT SHAKES DOWN PUBLIC SECTOR FOR DOSH
WATCH: Toby Young Skewers Labour Zero Hours Contract Attack Line WATCH: Toby Young Skewers Labour Zero Hours Contract Attack Line
MAIL TRICKED INTO QUOTING BATMAN FILM IN PLANE CRASH COVERAGE MAIL TRICKED INTO QUOTING BATMAN FILM IN PLANE CRASH COVERAGE
ANTI-FRACKING PARLIAMENTARY CANDIDATE WANTED TO WORK FOR FRACKERS ANTI-FRACKING PARLIAMENTARY CANDIDATE WANTED TO WORK FOR FRACKERS
Crick Gets Paxo’d Crick Gets Paxo’d
Cameron’s Secret A-List Cameron’s Secret A-List
Corrections and Clarifications: Brooks Newmark Corrections and Clarifications: Brooks Newmark
What is Wrong With the Lobby? What is Wrong With the Lobby?
Arrogant Bercow: “I’m Not Going Anywhere” Arrogant Bercow: “I’m Not Going Anywhere”
GOVERNMENT SHELLS OUT FOR PHOTO OF DEAD ZEBRA GOVERNMENT SHELLS OUT FOR PHOTO OF DEAD ZEBRA
DWP Press Office Wins the Internet DWP Press Office Wins the Internet