Osborne’s Corporatism Isn’t Fiscal Conservativism

There is often more truth in satire than news reporting and yesterday gave us an amusing example. The Chancellor’s vague plan for the Treasury to buy small firm’s corporate bonds was reported on by the Daily Mash thus:

Osborne’s offer of credit to thousands of small businesses will make Britain the first conservative-led communist state when the loans are inevitably defaulted and the government ends up owning and running everything.

The Chancellor seems to think the solution to the credit crisis is more debt, even though many businesses are doing the opposite and de-leveraging. Banks make money from lending and they lose money lending to bad credit risks. The government thinks the banks are being too cautious even though the markets think there is serious trouble ahead. Guido thinks the markets have it right.

When challenged to introduce growth-stimulating tax cuts the Chancellor refrains saying that he won’t because he is a “fiscal conservative”. George Osborne presumably would concede that Nigel Lawson was also a fiscal conservative, yet he managed to cut the top marginal tax rate from 60% to 40%. There is nothing fiscally conservative about maintaining a tax rate so perversely high it generates lower revenues by driving high earners out. This isn’t fiscal conservativism, it is political defeatism.

It is even less likely that fiscally conservative Nigel Lawson would countenance Osborne’s proposed socialisation of the corporate credit markets. When the government starts lending money to companies that no one else wants to lend to, you can be sure of one thing, they are going to lose a lot of taxpayers’ money. Billions.



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

GuidoFawkes Quote of the Day

P.J. O’Rourke tells the Daily Politics:

“You really do love your NHS. But what I don’t understand is if it’s so good why are you always trying to fix 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

TINY SUPER STRONG ROBOTS PULL 2000 TIMES THEIR OWN WEIGHT TINY SUPER STRONG ROBOTS PULL 2000 TIMES THEIR OWN WEIGHT
BBC JUMPS ON GUARDIAN’S FOSSIL FUEL DIVESTMENT BANDWAGON BBC JUMPS ON GUARDIAN’S FOSSIL FUEL DIVESTMENT BANDWAGON
Biased BBC Election Website at it Again Biased BBC Election Website at it Again
#DollGate Cartoon #DollGate Cartoon
Pump It: Dave Edition Pump It: Dave Edition
VIVIENNE WESTWOOD IN VILE “LIMBLESS BABY” STUNT VIVIENNE WESTWOOD IN VILE “LIMBLESS BABY” STUNT

WATCH: Obama at the 2015 White House Correspondents’ Dinner WATCH: Obama at the 2015 White House Correspondents’ Dinner
Spoiler Alert: Game of Moans Spoiler Alert: Game of Moans
WATCH: Boris V Miliband WATCH: Boris V Miliband
Flashback: Labour’s Shadow Housing Minister Opposed Rent Controls Flashback: Labour’s Shadow Housing Minister Opposed Rent Controls
What’s Claret and Blue? What’s Claret and Blue?
Media Idiocy Media Idiocy
Tom Baldwin Wrote Toxic Migrant Briefing Tom Baldwin Wrote Toxic Migrant Briefing
Ed Weaponises Dead Migrants Ed Weaponises Dead Migrants
Taking the P**s: ANDROID IN APPLE UROLAGNIA SHOCKER Taking the P**s: ANDROID IN APPLE UROLAGNIA SHOCKER
TELEGRAPH TELLING FRACKING PORKIES TELEGRAPH TELLING FRACKING PORKIES
ED MILIBAND IS READY ED MILIBAND IS READY
MILIBAND’S IDEOLOGICAL GURU IN PAY OF SAIF GADDAFI MILIBAND’S IDEOLOGICAL GURU IN PAY OF SAIF GADDAFI
PEAK #SEXYMILIBAND REACHED PEAK #SEXYMILIBAND REACHED