The Blog of
Nadine Dorries
Economic Slowdown
Posted Tuesday, 28 October 2008 at 12:37

Families, businesses and pensioners across Britain are grimly dealing with the consequences of the economic slow down and often used term, ‘the credit crunch.’ In these circumstances life is hard and is set to get harder - more businesses are failing, unemployment and prices are rising.

Faced with these pressures the government has a duty to act responsibly in the interests of those people who are facing the harsh realities of the economic squeeze. The Prime Minister believes that government borrowing should rise in an attempt to tackle the economic down turn. The problem is, levels of debt – both at a government and personal level – are already too high in this country, meaning we are inadequately prepared for the recession. The latest public debt figures for the last 3 months were £37.6 Billions – a figure higher than that for the whole of the previous year. Government borrowing levels are already out of control and are set to get significantly worse. 

In a letter published in one of the national newspapers last Sunday, a group of leading economists criticised the government’s proposals to spend its way out of the recession as misguided. In particular they argued a large and expensive public works programme would be too risky, as it could lead to the state taking such a dominant position, that once the recession is over, the ability of businesses and commerce in the private sector to recover would be severely stunted. In the 1990s Japan attempted to spend its way out of recession, with the only outcome being massive levels of public debt. Instead this group of economists have argued that taxes should be cut and interest rates varied to help stimulate growth in the UK economy.

Gordon Brown is a man with an overdraft, not a man with a plan. It is important that we do not confuse higher borrowing as a strategy for economic recovery, when in reality it is an inevitable consequence of the dire state of the public finances after 11 years of a Labour government. Public borrowing in the UK is at its highest since 1946, when Britain started rebuilding its economy after the Second World War.

Astonishingly, there is also no clear plan from the Prime Minister as to how the public finances will ever be returned to balance. As a country we face increasingly difficult times ahead, but are faced with a government that only knows how to spend its way out of a crisis.

 
 
 
 
Contact Nadine
Nadine Dorries MP
House of Commons
London SW1A 0AA
via e-mail at: nadine.dorries.mp@parliament.uk
or Telephone on 020 7219 5928

 
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