Saturday, June 25, 2016

Brexit-inducer George Osborne

Someone has said the Brexit vote to leave the EU seems to be similar to a mid-term bye-election event when voters lash out at the government through frustration - knowing that when the next general election comes they can revert to tribal voting, but for now they only want policy change, not government change. But now with the decisive anti-EU vote we get the biggest change for decades. Was it all down to frustration and could anything have been different? Could anything have changed the determination of just 3 voters in every hundred to swing with the EU for a little longer and give them a bit more time to reform?

The pundits say it was voters from the north, rural areas and seaside towns, those who felt excluded from the London-centric globalisation who won the day. Austerity victims? Renters and would-be home owners? The likely candidates can be found in blogposts: George 'Two Nations Toryism' Osborne  from March last year. Also in:  Budget 2015. Comfort for the comfortably off. Worries for the vulnerable.  

Tory supremo Chancellor George Osborne was left to work his grinding way with the balanced budget austerity-inducing agenda for years, whilst knowing that there was always another way to manage government financing:
 ' It is theoretically possible for monetary authorities to finance fiscal deficits through the creation of money. This would allow governments to increase spending or reduce taxation without raising corresponding finance from the private sector.'  
See para 3.34 of his Treasury document from 2013. 

Mr Osborne uses fear. He scared voters before the 2015 election about Labour 'mis-management' see: How did the Tories do that? Election May 2015  Last week he was openly threatening a terribly harsh budget if we dared to vote to Leave the EU.   But no, huge numbers of Brits voted for Brexit, and even his own MPs are rebelling on that threat.

George Osborne, Brexit-inducer,  has hopefully delivered his last budget. His harsh and unnecessary policies have brought about his own and David Cameron's downfall. The next Chancellor of the Exchequer will have a clear desk so the outlook is hopeful for some serious economic re-thinking, to bring about a fairer and stronger outcome than the lost years of growth-preventing austerity. 

There are many suggestions for new ways of handling financial matters that would bring fairer outcomes whilst promoting growth. Here is a good summary involving - at one event
Lord Turner; Prof Steve Keen;  Fran Boait; Chris Giles; Barb Jacobsen; Natalie Green and Richard Spencer.

Prof Richard Werner writes (para 3):
'...much greater economic growth is possible as soon as steps are taken to boost bank credit for productive purposes – irrespective of whether the UK stays in the EU or not (although Brexit will make it much easier to take such policy steps).'

Posted by Charles Bazlinton. Author The Free Lunch - Fairness with Freedom

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