Playing Politics with Economics

A letter sent to the Chester Chronicle & Standard:


I do wish Phil Tate (Labour activist & Council candidate) would stop trying to re-write history.

Last week he claimed that the 'Tory-led Government' (A contender for most childish political phrase of the century?) were trying to take credit for the 0.5% base interest rate that Labour installed in March 2009. Firstly, no Government can set the base rate since Labour gave the Bank of England independence. To suggest that Labour controlled an independent body does not portray the Labour Party in a positive light. Indeed, Labour's claim that the Tories are cutting the deficit too far and too fast is nonsense, particularly with reports coming through that there would only now be 3 years difference between Labour and Tory plans.

Similarly, Mr Mosley should not take great delight at the 0.5% interest rate. It is basic mathematics and economics that the lower the interest rate, the greater the borrowing, and in turn the more likely there is to be yet another credit fueled boom and bust. Moreover, a 0.5% interest rate severely affects those who used their money wisely, and saved for a rainy day and their retirement, and does not encourage prudent investments, simply encouraging those looking to make a quick profit.

The economy is a mess. Labour want to drag it out for another 10 years, the Government is too scared to accept immediate pain for public long-term gain. Given the choice between a painful decade, ending with a true bust, or accepting the failures of Government now, and starting to rebuild our economy, Labour, the Liberal Democrats and the Tories are too scared. They're too concerned with being in power, as opposed to doing what is right for the people. 


Government bailed out the banks, Government got us into this mess, and the Coalition Government is most definitely not sorting this out.