News that the British economy has now entered a dreaded “double-dip recession” is being greeted with surprise from the government, when it ought really to have surprised no-one. That the government’s own dismal failure is immediately reworked into the justification for imposing more ‘austerity measures’ and more quickly, is, again, something we might all have expected.
David Cameron apparently said that the figures were “very, very disappointing”, whilst adding only that the government would stick with its plans and do “everything we can” to generate growth.1 Everything, that is, aside from tackling the real cause of what is actually a worldwide economic depression, by, for instance, re-regulating our own financial markets and also criminally investigating the banks that are responsible for the crisis. And everything except for making significant investments in infrastructure projects and government services that would actually generate useful jobs at union wages.
Austerity isn’t simply cruel, from a national perspective it is suicidal. Just ask the Greeks… or the Italians, or the Irish, or the Spanish, or for that matter, the Argentinians and the Chileans.
Labour leader Ed Miliband said the figures were “catastrophic” and asked Mr Cameron what his excuse was.
“This is a recession made by him and the chancellor in Downing Street. It is his catastrophic economic policy that has landed us back in recession,” Mr Miliband said.
From the same BBC news article.
Fair enough, but where are Labour’s alternatives? During the last general election, the choice was between hardcore austerity meted out by the Torys, or softcore austerity from New Labour. How about no austerity! How about closing down the offshore tax-havens and thereby forcing the major corporations to stump up for the deficit. I don’t hear you, Mr Miliband.
The people are very slowly getting wind of what is really going on here. They increasingly see that the bankers have far too much power and influence over our elected representatives. Indeed, Goldman Sacks have blown their cover completely with the dictatorial appointments of Lucas Papademos and Mario Monti in Greece and Italy respectively, not to mention the more recent appointment of Mario Draghi as President of the European Central Bank (ECB). Yet there remains an almost total political vacuum in this country, with no mainstream party prepared even to question, let alone challenge, the steady ‘technocratic’ takeover of our societies.
So I see every reason to repeat an earlier plea for the urgent formation of a new political party. The party I envisage stands for human rights and social justice. It stands for the people and against the established elite. It says defiantly that enough is enough.
Economist Michael Hudson spoke about the reasons for the deepening financial crisis on yesterday’s Keiser Report on Russia Today.
In the interview with Max Keiser [part 2 of the show: 13 mins], he explains why the bailouts have failed and, in their current form, must continue to fail. He also points out how there are plenty of alternatives for solving this crisis other than the deathly hammer of ‘austerity’.
Here is a previous post, written last summer, which breaks down why ‘austerity measures’ will fail to rescue the economy, whilst presenting a few ideas for alternative measures that would genuinely help to turn the country around.
1 According to a BBC news article entitled “UK economy in double-dip recession”, published on April 25, 2012. http://www.bbc.co.uk/news/business-17836624