November 24, 2016

Thatcherism lightens JAM’s load

Thatcherism lightens JAM’s load

Philip Hammond’s first Autumn Statement puts the Government’s promise to serve all in jeopardy.

Let’s not beat around the bush: Philip Hammond is not a Thatcherite. He does not believe in living within one’s means during times of extortionate debt and he is not one for serving Britain’s economy with a ladle of harsh medicine. This does not make him a man of no talent, a ‘wet’ or a Miliband spy dressed in blue drag – Mr. Hammond is nobly serving his nation in one of her most politically turbulent times of the twenty-first century – but it is highly likely that his Keynesian policies could boomerang to give Theresa May and the Conservative Party an acute thwack in 2020.

How so? It boils down to the fact that no Party can ‘work for everyone’ under an economic policy that fails to cut deficit. There is no debate to be had on this truth. We can be proud of what our Party has done to revert some of the mess that New Labour left behind – for there is much to be proud of (Britain now enjoys a record employment rate of 74.5% thanks to a Conservative government) – but we would be foolish to deny the worrying increase in debt with which Britain is still burdened. Eight years on from the financial crash and government debt stands at 90% of GDP. This is a problem that needs amending.

Now, to hush the automatic reflexes of some, this increase has not been a result of excessive borrowing: Hammond’s Statement has put that theory to bed, with the announcement that public sector net borrowing will have fallen by half a percent by the end of this year. Simply put, when a nation’s debt is allowed to reach such staggering amounts (*cough* Gordon Brown *cough*), it is excruciatingly difficult to have it immediately reduced, especially when you factor in effects like debt interest (which in itself surpassed the £1 billion mark in 2014).

It is not impossible however. It merely requires an iron hand. Someone who is not for turning. The problem is, Theresa May is not (despite tabloid adamancy) this figure – and neither is her Chancellor. They do not believe in constructive austerity or any such ‘tough’ economics.

Again, this does not discredit them as individuals. They have a vision for how Britain should work and they are asserting it. Additionally, Theresa May will deliver on Brexit.

Alas, life does not end at the triggering of Article 50. We must look ahead to the not-so-distant general election that awaits, in just over three years’ time. This is when ‘everyone’ shall hold Theresa May’s Conservative government to account. They (JAMs, Mams and the like) shall look at whether their lives have improved under her government and weigh up the pros and cons of instead giving mandate to her opponent.

There has never been a time when a government pursuing Keynesian economics has worked for all members of its society during such debt. If Philip Hammond cannot change this fact of history as he rejects the principles of Thatcherism that last revived Britain from economic stagnation, ‘everyone’ will hold the Conservatives to account in 2020, with another ‘C’ waiting in the wings to paint Britain red.

Not convinced the electorate would have the guts? Welcome to the new era of democracy.

5.00 avg. rating (95% score) - 2 votes
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  • Shadow Warrior

    Hammond is continuity Brown. He is a hand-wringing lefty looking for clever wheezes to raise more tax in ways that people don’t immediately notice.

  • captainslugwash

    I predict the Budget will attempt to show the Left how caring the Tories are, and it will be funded by screwing over the working man.
    If Corp Tax comes down, I bet Divi tax will be going up.
    I would love to be wrong.

  • skynine

    We really need to look at tax credits, in particular in work tax credits that encourage people to work part time to preserve the benefits. 45% of women work part time and I would hazard a guess that tax credits are the main cause. This leads to low pay, low skill work in supermarkets and the retail sector including coffee shops. The government needs to get back to the employer paying people to do a job for economic reasons rather than to get onto the tax credit ladder. Like all government benefits it distorts the market and diverts government expenditure into non productive areas.
    The refrain that the government has cut expenditure is not true, it increases every year as more and more goes into welfare.

  • MrVeryAngry

    fat chance

  • MrSauce

    So, when wouldn’t we want a ‘budget for growth’?

  • Rob

    I note that the UK Government has just slapped on a 25% tax charge for anyone moving abroad and wishing to move out their private pension from the UK.

  • SonofBoudica

    The Remoaners will do their utmost to sabotage the Government’s negotiating position. They do not want a successful outcome; they want a failure. They want to be able to scream “Told you so!” from the rooftops.

  • EnglandLaments

    Thank goodness for Andrew Neil, the one media hack who scares the pants off the established politicians. He was spot on with Heidi Allen!

  • joshuafalken

    I had a very long, hard, studied and considered look at the hope, care and aspirations of all Europeans, before I voted to get the UK out of the toxic grasp of Brussels.

    The European Union and it’s charge of “ever closer union” has borrowed and spent its way to oblivion, whilst enslaving the working and middle classes in debt.

    The central control mantra of the unaccountable Brussels ruling elite, delivered through a mixture of socialism, globalism and corporatism is entirely responsible for the populist revolt by the millions of “Just About Managings” across Europe.

    We must remember the ultimate goal of socialists, globalists and corporatists is control, not prosperity. see https://mises.org/blog/goal-socialists-socialism-—-not-prosperity.

    Social equality and economic growth always fail under central control and fighting against the Brussels doctrine on behalf of all Europeans is why I voted for Brexit.

    Britain has a long history of helping Europeans depose tyrants and Brussels is just the latest incarnation.

    Britain is the most racially advanced and accepting society on the planet. We welcome those in need and those that can help us with open arms and a smile; that will not change.

    We are also one of the most innovative, talented and open societies in the world, which why everyone wants to live here. However, we cannot fit everyone in, so we have to have clear, balanced and fair immigration policy which is where the arguments start between the monetarists and humanists will never be reconciled.

    I thought long and hard before coming to the conclusion that leaving the EU was in the best interest of all Europeans, as Brussels is toxic and cannot be reformed from within.

    Also, I find it insulting that people who voted Remain have insufficient faith in British ingenuity, compassion and skill to get a good deal for us and see the Europe that we love get a better deal from Brussels and the reform that European people deserve. https://mishtalk.com/2017/03/29/bad-brexit-deal-better-than-no-deal-mathematical-idiocy-odds-of-no-deal/ and https://www.worldheadlines.info/2017/03/after-brexit-9-reasons-to-be-bullish-on-great-britain/

    The politics of left verses right are dead because neither have delivered the promised economic growth and social mobility for anyone, but themselves. The populists are not selfish per-se, they just want to take back control of their own destiny that left/right politicians have freely given away and/or exploited for their own ends. In my constituency, the local residents group are taking over the councils as politicians ignore voters, so Westminster should beware of the well-organised, local resident independents at the next election. This is a peoples revolution which should be shouted from the rooftops, but liberals remained deafened by the socialist, globalist and corporatist “vested interests” that have spectacularly failed us and are obediently crying foul and fake.

    There will be an initial unpalatable inflationary cost to fighting globalism and rolling back central control that few appear to have factored in, but dismantling failed left/right vested interests should eventually free libertarian socially-conservative capitalism from the shackles of TBTF corporatism to feed economic growth and social mobility.

  • agdpa

    The EU usually makes the wrong decision – on immigration, on freedom of movement, on the euro, on the Ukraine, etc. etc. Little hope it will get Brexit right.

  • brownowl

    Eh? Reference please!

  • Neil2

    Sod caring. Screw the spongers and breeders. Kill HS2. Stop all “green” subsidies. Slash “foreign aid” and walk away from the EUSSR with immediate effect.

  • Rob
  • John C

    What a confused article. It conflates surveillance by the security services with poor defences against fraud.

  • John C

    Err, it’s the UK that’s leaving the EU, not vice versa.

  • John C

    Me, now. ‘Growth’ is a manic obsession.

  • La Face Nord

    Mr Redwood – are you aware of the Biased BBC website? It’s been exposing their agenda for a long time, but I imagine you’ve been well aware of the BBC’s agenda for quite some time…

  • Contact Rvtech

    The post is great

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