Saturday, January 10, 2009

Eaten by termites

I am struck by the number of exhortations from politicians - mainly Labour and specifically Gordon Brown - about "seeing us through this downturn" and getting the economy back again. ( I paraphrase - but you'll get the idea ).

The image is one of a blip, or trough which will will climb out of to where we were before.

We won't.

Why ? Because the structure of our economy has been eaten out by debt. Private individuals and companies own frightening amounts of money, and now the government ( never wanting ot be left out ) is fighting to outstrip them.

We are in a house that has suddenly started to crumble, but where it hasn't yet been appreciated that the whole structure has been compromised by termites. Debt is now unbearable by individuals and companies, and soon the government too.

We have allowed our economy to become to unproductive, whilst paying ourselves more than we earn in terms of goods and services. We, well Gordon Brown specifically, have blown over a trillions pounds on unreformed public services. Service of the government has become the growth industry.

Somebody needs to address the structure of our economy as well as the panic measures to correct the trjetory of the current crisis. Returning to as we were is not an option.

Answering this question used to be what the Conservative party was all about.

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