Tuesday, 22 May 2012
Clegg sounds new economic tone
Sounds good at first sight. Hope the massive boost is not an exceptional £500m or some embarrassing number. The housing deficit in Southern England and especially in London require a wood of cranes. The transport infrastructure, in particular public transport is an even bigger beast to tackle.
This is a one off chance for the Government to boost its ratings and actually leave a legacy. Will they grab it?
Actually interesting to note the "new economic epiphany" is all a political calculation meant to attenuate the shock from the soon-to-be-passed Project Bonds proposal in the eurozone. The European economic thinking pendulum is finally tilting towards capital spending-led stimuli. More chronically, the electorates realised their faith in posh gurus was misplaced and actually the "rulers" policies delivered zero, nada, niente for the masses. For all the talk of "markets trust us and keep gilt yields low" the government is hoping the eurozone will sort itself, the cocoa and ore prices will go down, the iranians will recycle their uranium spinners and Putin will give free gas to UK's electric generators and the chinese will list all their companies on the LSE for the economy to grow and employ more people. Oh, and Airbus will patent the vertical take-off and landing from the MoD so a third runway at Heathrow is not needed anymore. So David sent Nick to triumphally announce the massive boost.
Essentially the government is desperately trying to look innovative and proactive, and that in fact it is in touch with the reality, and not look embarrassingly retrograde (instead of superiorly conservative) and ineptly stubborn in its fixation with deficit reduction and protection of the privileged.