As a result, we face the prospect of a Conservative-Lib Dem coalition determined to use the financial crisis to smash the postwar consensus on public services, and make the poor pay for the greed and incompetence of the rich.
These \”once in a generation cuts\” aren\’t going to get even close to overturning the postwar consensus. They\’re not even going to try and return us to the status quo in 1997: without a lot of luck and a sailing wind they\’re not even going to get us back to 2001/2.
The cuts in future planned expenditure are, at very best, an attempt to get us back to where we were before Brown turned up the ratchet on public spending.
As can be seen here. Pre war spending was in the high 20s, low 30s of GDP. Post war (ignoring immediate post war paying down of debts etc) has been mid to high 30s to mid 40s. It\’s now at the very top end, 45% or so, of that \”post war settlement\” and the aim is to bring it down into the middle of that past war settlement range.
2002, as an example, govt was about 35% of GDP. They\’re not even trying to get back to that level!