Captain Caveman wrote:
Things only started to go wrong in the UK economy from 2002 onwards with the deliberately encouraged massive spiralling of consumer debt and yet another housing boom, spookily enough at the precise time of Labour's true colours being shown. They were no longer shackled to Tory Prudence spending plans unlike their first term, and the fruits of this are there for all to see.
Still, the Tories had more or less self destructed as a party, and it is only now that they are in recovery - far too late of course. Had they elected Clarke as their leader in '97, things could have been very, very different for us all (we wouldn't be in Iraq for a start). Ironically, I am no fan of Cameron at all; he's just another smiling face/Blair type of no substance whatsoever, precisely as per Blair. Whatever happened to real politicians and visionaries like Atlee, Churchill, Thatcher?
While I'm with you on the civil liberties bit, and the vision one too, you're bringing rather too much in to one thing, and seeing causation where there is none. Or little, anyway.
There is no coincidence in the fact that the downturn is global (or 'global', since poorer countries won't be affected internally, only to the extent to which their economies (perhaps that should be apostrophised, too) depend on other countries'. This is not a downturn 'caused' by policy changes, it's a downturn caused by the general thrust of Western countries' political leanings towards less regulation, trickle down economics (ah, how glad i was to see that old canard mentioned in the press - here but not forgotten) and a belief generally that growth is good for all and must be maintained at all costs. Growth isn't always good for all - unrestricted growth of the type we've seen sees avaricious spirals of profit-seeking, which in the case of credit leads to some dreadful decisions being made as people head for the bottom. Can't be competitive any more at the edge of 'normal' mortgage lending? Then lets unleash our cash-lending ratios and go after people with less income, we can grab loads there, and so on until something finally breaks the cycle. Possibly in a more regulated economy people might think "that's enough growth for now" and pause, but then I'm sure there would be siren voices crying out at the restrictions - like testing an injury (speaks the runner) you only know you've overdone it when you go too far, and I suspect going too far is an essential part of the process, causing restraint.
None of that, though, avoids the fact that whatever is done or not done, things will happen that will lead to years of growth and (fewer) years of stagnation. Boom and bust is the old term, which has been linguistically cleansed but perhaps we can just say 'ups and downs'. These things will happen. Spotting why they have is useful and interesting but we shouldn't be too keen to look at the past and try to apply the lessons to the present - history may repeat itself, but it forgets some of the lines and thus changes things. Apply the Japan 1990s play book here and we won't get the same result, nor will we if we use the knowledge of the Great Depression. This downturn is different and you *can't* go through it without making mistakes. Doesn't mean you shouldn't try, but appeals to history just don't work.
I'm an odd mix of lefty Marxist in places and true free marketeer. I've lost much money on various companies being nationalised or going bust (bye Woolies, bye Bradford and Bingley) but am still wedded to the belief that in a recession companies go bust and that's right. Yes it's painful, but ultimately businesses should fail so that into the gap can come something else. Short (ish) term pain, long term gain, and it's their populist "we will help business" agenda that is going to do the most harm - something that would undoubtedly be shared by any party in power until we get one of those visionaries back.