Further Thoughts on Coalition Cuts

How convenient of Labour to have provided a mess for the Coalition to clear.

The fact that business are showing profit growth is in part due to the fact that the real economy was fairly stable the failing of the banks is the main reason for the previous recession.

The Coalition should be taking a social not a financial measure of their actions. We tend to concentrate to much on the financial rather than the social effects of policies in the country.

1981 saw a backlash against Tory policies under Mrs Thatcher;there were riots in major cities including London Liverpool Manchester, and Leeds.

The social costs for these times have still to be paid and unless the Coalition review their policies In crime I'm

afraid that social cohesion will be split and the country will face a massive. increase in crime.

Double Dip Recessions

The UK is facing the possibility of a double dip recession according to most of the news commentators and economists.

This is not an accident the Coalition decided not only to begin extensive public expenditure cuts but also talked the economy down.

It appears that fears of a Greek situation lead them to this decision.

The fact that the Labour government had steered the economy through the financial crisis caused by the banking collapse was ignored by the Coalition who after reviewing the books of UK plc decided that a dose of deflation would be good medicine.

Unfortunately they have;inspite of all the critics, including this blogger embarked on the wrong remedy and has put the patient in grave danger.

The Coalition does not have the will of the electorate to carry out these policies and the sooner the Lib Dems. leave the better.

House Prices and The Economy

The issue is that the Coalition felt it necessary to put cut ahead of the economic health of people, once you go along that road, the inevitable fall out will ensue..
What the Coalition has done is to ferment an atmosphere of doom and gloom in order to pick off the push through those policies.

The good news is that the Coalition is still aware that they need the will of their constituency hence the backtracking on milk.

I still believe that once they see the damage that is being done to the real economy, they will backtrack on cuts.
The only relief will be wether the so called export driven recovery actually happens.