|
How do you tell a government at the end of its tether? It reaches for a dollop of deflation, it doles out sermons, it preaches sacrifice. The last resort of failure.
That’s us. Mad Mervyn promises two years to pave the way for the election. Darling announces a 2% pay policy (with inflation at 4.3%). Gordon glowers and demands a Parliamentary Pay freeze. It’s all stupid gestures and misunderstood solutions.
Madness
Deflation never worked in the past. It will be worse now when everyone’s hung down with debt, wages are low and everything’s pared to the bone already. It will mean 18 months of strikes and misery in the public sector.
Labour governments usually get to the stage that they need a futile gesture and regularly get defeated as a result.
In fact we could do with a bit of inflation. It gets things going. Even cheerful. Government can see beneficiaries don’t lose out and up to 8% (which it won’t reach) is perfectly acceptable.
The unions haven’t got the power any more to generate wage inflation. It’s a dead bogeyman.
So let’s Grow with Labour! Much better preparation for an election than Gordon glowering at us for two years! Inflation means buoyancy. Buoyancy is good for elections.
* * *
At a kissy kissy media party last week. A TV lady did kissy kissy and said, “You smell of fish.” What the hell does she expect the MP for Grimsby to smell of?
* * *
Flash News. Snap poll says Mitchell is UK’s 89th most influential blog.
* * *
Mad Mervyn King thinks he’s being kind if he celebrates a period of inflation by not raising interest rates. Balls 5% is far too high. It’s double US, higher than Europe’s and crippling the economy. It’s shoring up the pound at a level which is far too high. Gerrem down Merv. |
