This government has now been in power for almost a year and here’s a check list of their achievements so far. Unemployment, going down a year ago, is now going up. Real incomes fell last year for the first time since 1981 and are on course to fall again this year. Consumer confidence has slumped to levels seen in the depths of the recession. High street retailers are sending out profit warnings. And, to cap it all, the government has been forced to revise up its forecasts for the budget deficit.
Households 6% worse off, says IFS. Britain is on the mend, says George Osborne
New IFS research published today estimates that in the three years from 2008 to 2011 real household incomes will in fact have fallen by 1.6%, or £360 a year. So households are likely to be about 6% worse off than they might have expected had incomes risen in the normal way.
read the complete article at ifs.org
Sound Bites for a Sick Britain
In the (UK) center-right government’s view of the world, all ministers need do is squeeze spending, hack the public sector and bingo! The private sector, in all its widget-making, iPhone app–creating dynamism, will come roaring in to fill the gap.
If that sounds sketchy and unconvincing, it’s because it is. This sort of experiment was tried before, in the early 1980s—with disastrous results. And as far as manufacturing goes, the Westminster argument underestimates just how bombed out the sector is.
via The Nation