Contrary to the propaganda at the last election, it ain’t the spending that is causing the deficits. It is the other side of the ledger. Taxes collected by the Government are failing due to company losses. The recession was caused by money being ripped out of the economy by derivatives gone wrong, the government reaction is to reduce government spending, and now they weep at the consequent collapse in demand?
They are not thinking it through. They need to take their current efficiencies and spend a little on economic incentives that replace the demand by making the private economy sound. They are miles away from being able to recover the private sector so, as most hands off economist driven Conservative governments (GW Bush for example) do, they start a war to get that spending demand going.
The Liberal Democrats are not happy with their end of the bargain. They have to break this coalition.
– Comment on Guardian article
Coalition ‘most unlikely’ to meet key economic goals by next election
27 August 2012 11:59AM