Well, yes, I suppose so

Everyone in government knows the Bank’s cut in the base rate to 0.5% in the aftermath of the crash and injection of £375bn into the financial system to reduce borrowing costs is what allowed Osborne to apply a tourniquet to public spending.

You have two stimulatory tools, fiscal and monetary policy. One can indeed offset the other. That’s rather the point in fact.

Has no one explained this to The Observer yet?

8 thoughts on “Well, yes, I suppose so”

  1. You have to hand it (grudgingly) to Osborne; terrible chancellor but great politician. Borrows and spends like a sailor on shore leave but convinces the retarded left that he is a proponent of austerity.

  2. I’d like to see some info (a graph perhaps…?) showing the changes in spending and tax in different categories over the last 10 years. Anyone know of any…?

  3. MC,

    Wouldn’t a good politician be one who can get away with austerity while convincing the screaming simpletons that he’s spending like a drunken sailor? It seems your notion of success is giving them what they want and convincing them you haven’t.

  4. The media say people want politicians who turn on the taps, borrowing so we do not have austerity. Past 2 general elections the majority of voters however have instead voted for parties who were doing austerity.
    The Conservatives increased their number of votes at the last general election – suggesting voters do like what they were doing.

  5. “And not since 2010, when George Osborne effectively handed over the job of managing the economy and keeping growth healthy to the Bank of England.” Did he? First I’ve heard of it. It was Gordon Brown who handed over the control of the base interest rate to the BoE (and was widely applauded on all sides for doing so). But that was all, and he, and his successor Osborne, continued to micro-manage the macro-economy at will. The use of the numpty phrase “keeping growth healthy” strongly suggests the writer dwells in an economics befuddlement zone (an Arts graduate perchance? Oh yes, Social studies – politics at John Moore’s Uni Liverpool, if his LinkedIn profile is to believed).

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