Economics update on the election, from John Birchall
Whatever ones opinion of Gordon Brown it can’t be easy trying to persuade people that you are bringing us slowly and carefully out of recession when the ‘numbers’ keep being less than encouraging. Just look at growth, the engine of all the hopes of reduced public sector debt.
We are growing but at such a slow rate that the real economy sees little real improvement. This is shown in the unemployment figures released at the end of last week.
In fairness not all of the electorate are trained in economics but the media makes much of these numbers and the air of doom and gloom do seem to creep into certain bulletins!
Just in case Mr. Brown and his Chancellor were not fearing another raft of figures they also have inflation rising – though this was expected with quantitative easing and the various stimulus packages the current government used to reduce the probable increase in unemployment to levels that would have caused even more social misery.
It seems that the real battleground of the election remains ‘debt’; its size and how and when we will pay it back. Despite some politicians suggesting a collapse in sterling and a loss of triple a status the economy and the pound seem to be viewed as ‘OK’ by the markets.
It’s going to be an interesting last 10 days of the campaign and whoever wins they face some difficult and probably vote losing decisions.