The Economic Illiteracy of Ipswich Labour

I’ve just read the latest musings of the bloke who wants to be our MP. I can’t decide whether Captain Mainwaring is being disingenuous or economically illiterate. His latest Morning Ipswich Star column is absolutely shocking.

It starts off with a lie.

According to David Cameron everything is fine and the Government is “paying down the debt”.

No David, the prime minister is saying that the economy is improving and we are paying off the deficit. Maybe Captain Mainwaring doesn’t know the difference between deficit and debt. Or maybe he’s presuming the people of Ipswich don’t know the difference between deficit and debt and is patronisingly trying to sound as if he knows what he’s talking about when talking to them.

The deficit is to do with public spending being more than  tax revenue . This was caused by Labour having us live beyond our means. The debt is caused by Labour’s obscene amount of borrowing to spend on pointless pet projects and the interest being paid on it.

Before we can start paying of the debt Labour created we must bring down the deficit. Then we will have the income to pay off Labour’s debt.

Mr Ellesmere then says

And far from reducing, borrowing is actually increasing. The Government has borrowed £5.4 billion more this year than at the same time last year.

Yes, we’re borrowing to pay off the interest on the debt created by the Labour party.

Then along comes another lie.

This isn’t what you’d expect if, as we are told, that there more people than ever in work. You would expect income tax receipts to go up and the benefits bill to come down.

This is what you would expect if bringing down the deficit was the priority which it is. There are more people in work and the benefit bill is coming down. Ellesmere says that a large proportion of the newly created jobs are extremely low paid. Wages are low because of Labour’s open door immigration policy.

Then he comes out with this

And we’ve seen with the recent problems in care homes in Suffolk the wider damage that is being caused by wages being screwed down ever further.

Ok, he is being disingenuous. The care homes were not being run to the standard that the Tory Suffolk County Council found acceptable. You can read the facts here.

He then gets back to the borrowing to pay for the interest on his lousy party’s debt.

This isn’t an accident – it’s the reality of David Cameron’s “long term economic plan”. But as an economic model it is totally broken. If we carry on like this then borrowing won’t come down and austerity and cuts to services will become a permanent reality.

No David, the economic model is working. Once the deficit is down to a reasonable level, we will then start paying off the debts. But before we start paying off the debt, we have to get our economy back on an even keel. Hence we are cutting the deficit.

Then David Ellesmere comes out with this

We need to break out of this vicious downward spiral. A National Minimum Wage of £8 an hour or more like Labour is promising would be a great start.

Amazing! The article is so bad that Captain Mainwaring hasn’t even got his own party’s “policies” right. Labour has not promised an £8 per hour minimum wage. They promised it by 2020. Mr Ellesmere implies it would happen in June 2015. Of course, the thing with this is, if inflation stays the same, if the minimum wage was £8.00 an hour in 2020, there really would be a cost of living crisis. Therefore Labour’s promise is based on more economic illiteracy.

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2 Responses to The Economic Illiteracy of Ipswich Labour

  1. Julie says:

    Thank you for explaining the difference between deficit and debt. Ipswich Labour are so dishonest to the electorate. They are horrible.

  2. George Warren says:

    The annual overspend (the deficit) will still take a few more years to reduce to zero, because of Ed Miliband & Gordon Brown’s economic illiteracy from 2001 to 2010 when they allowed government spending to spiral out of complete control, and they borrowed money in the so-called economic good times, when they should have been reducing the deficit and debt.
    When the Conservatives came back into the driving seat on 12th May 2010, David Cameron and George Osborne had a clear choice of either-
    a) Reduce the deficit to zero immediately (by slashing welfare & all government departments & laying off most of the public sector) (clearly unreasonable & impossible);
    or
    b) Gradually reducing public expenditure over a number of years, enabling the private sector to create the jobs & allow growth to occur: which they have successfully done.

    It is taking longer (to pay off the deficit) than anticipated because Labour’s great recession was the worst since the 1930s and Ed Milband and his comrades’ incompetence when they were crashing UK plc off the cliff from 2007 to 05/05/2010, and their inability to keep public spending and welfare under reasonable control before then.

    The well respected Nick Clegg even knew that public spending needed to be reduced substantially but didn’t admit it until 12/05/10. It was only the Conservatives who were honest with the British people then what needed to be done & the electorate appreciated such clarity.

    The Conservatives’ plan for the British economy is working with UK growth outstripping other western economies and more people earning their own living than ever before, which is far better than having to live off welfare benefits.
    Sadly all of this information is beyond the understanding of Ipswich labour!

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