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

Quote of the Day

Nigel Farage on Jeremy Corbyn:

“North London, bicycles, non-drinker, doesn’t sound very much like me does it?”

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

Hamas Endorse Corbyn For Leader Hamas Endorse Corbyn For Leader
WATCH: Stella Reads Her Abusive Tweets WATCH: Stella Reads Her Abusive Tweets
WATCH: PM to Accept Thousands More Refugees WATCH: PM to Accept Thousands More Refugees
Freeserve Emails Borked Freeserve Emails Borked
WATCH: COOPER V CORBYN WATCH: COOPER V CORBYN
84% SAY CORBYN WON SKY DEBATE 84% SAY CORBYN WON SKY DEBATE

No, Britain Has Not Accepted Just 216 Syrian Refugees No, Britain Has Not Accepted Just 216 Syrian Refugees
POLL SUGGESTS REFERENDUM RE-WORDING HELPS EU-LEAVERS POLL SUGGESTS REFERENDUM RE-WORDING HELPS EU-LEAVERS
BURNHAM WEAPONISES REFUGEE CRISIS BURNHAM WEAPONISES REFUGEE CRISIS
TAIWANESE VIEW ON LABOUR LEADERSHIP TAIWANESE VIEW ON LABOUR LEADERSHIP
GOOGLE’S FUN FACTS: ARE YOU FEELING CURIOUS? GOOGLE’S FUN FACTS: ARE YOU FEELING CURIOUS?
PRO-EU LOBBYIST IN HEART OF WHITEHALL PRO-EU LOBBYIST IN HEART OF WHITEHALL
NONSENSE AND INSENSIBILITY: EMMA THOMPSON’S POETRY PROTEST NONSENSE AND INSENSIBILITY: EMMA THOMPSON’S POETRY PROTEST
ANTI-UKIP BURNHAM V PATRIOTIC ‘PURPLE’ ANDY ANTI-UKIP BURNHAM V PATRIOTIC ‘PURPLE’ ANDY
CORBYN: QUOTING THINGS I HAVE SAID IS “CYNICAL” JOURNALISM CORBYN: QUOTING THINGS I HAVE SAID IS “CYNICAL” JOURNALISM
All Change at News UK All Change at News UK
GDS IMPLOSION CONTINUES GDS IMPLOSION CONTINUES
Virgin Blackmailing Broadband Customers Virgin Blackmailing Broadband Customers
Google Logo Evolution Google Logo Evolution
Corbyn Supporters to ‘Drink Blood of Thatcher’ Corbyn Supporters to ‘Drink Blood of Thatcher’
Government Pleads Guilty to Climate Crimes Government Pleads Guilty to Climate Crimes
New REFERENDUM QUESTION New REFERENDUM QUESTION
“SECURITY” NO. 10’S CORBYN ATTACK LINE OF CHOICE “SECURITY” NO. 10’S CORBYN ATTACK LINE OF CHOICE
Guardian Looking For New Pol Ed Guardian Looking For New Pol Ed
NATIONAL CRIME AGENCY HACKED NATIONAL CRIME AGENCY HACKED
NO CAMPAIGN MAKING FRIENDS: “I HOPE YOU DIE IN A FREAK YACHTING ACCIDENT” NO CAMPAIGN MAKING FRIENDS: “I HOPE YOU DIE IN A FREAK YACHTING ACCIDENT”
CORBYN EQUATES BIN LADEN DEATH “TRAGEDY” WITH 9/11 CORBYN EQUATES BIN LADEN DEATH “TRAGEDY” WITH 9/11
RICH’S MONDAY MORNING VIEW RICH’S MONDAY MORNING VIEW
ENVIRONMENT MAYOR TOTTY WATCH: BRAZIL EDITION ENVIRONMENT MAYOR TOTTY WATCH: BRAZIL EDITION
HAIN GRAVY TRAIN HYPOCRISY HAIN GRAVY TRAIN HYPOCRISY