A reminder that despite the economic problems we face, the world has confidence that we are dealing with them.
Just interviewed George Osborne about the AAA downgrading- he says it’s redoubled resolve to deal with debts – ie. he’s not for turning
— Sophy Ridge (@SophyRidgeSky) February 22, 2013
Fraser Nelson calls the news “politically devastating for George Osborne, given that he has asked us to judge him by the preservation of this rating (and made it a manifesto pledge).” He brings attention to the following part of Moody’s statement:
The country’s current economic recovery has already proven to be significantly slower — and believes that it will likely remain so — compared with the recovery observed after previous recessions, such as those of the 1970s, early 1980s and early 1990s.
And he provides the graph to prove it:
Sunny Hundal is watching for Labour’s response:
Austerity didn’t work for Osborne in delivering economic growth, nor in reducing the deficit and nor in saving our AAA-rating. All these factors are inter-related of course but the point is the cuts have been a disaster for the UK economy.
Therefore, it makes no sense for Labour to go into an election in 2015 promising they would match (as some have hinted) George Osborne’s cuts to spending. Such a stance would fundamentally undermine what Labour has been saying for the past 2 and half years.
As I always say, Balls evidently knows all of this. It’s just whether he has the courage to try to redefine the debate and tilt the rhetorical axis which the Conservatives have monopolised so effectively. Everyone believes cuts are necessary. Someone needs to start calling out the bullshit and hope we can pull ourselves out of this self-created swamp.