"A lie gets halfway around the world before the truth
has a chance to get its pants on"
- Winston Churchill
As long as the Tory party continues to talk down the
economy via the blame game, confidence will not be given an opportunity to
return. For it is an undeniable and inescapable economic fact: without
confidence and certainty there can be no real growth.
Misleading claim 1
The last government left the biggest debt in the developed
world.
Those who use cash terms (instead of percentages) do so to scare
mislead and give half the story.
Its common sense, in cash terms a millionaire's debt would
be greater than most peoples. Therefore, the UK would have a higher debt and
deficit than most countries because we are the sixth largest economy. Hence,
its laughable to compare UK's debt and deficit with Tuvalu's who only have a
GDP/Income of £24
million whilst, the UK's income is £1.7 Trillion.
Labour in 1997 inherited a debt of 42% of GDP. By the start
of the global banking crises 2008 the debt had fallen to 35% - a near 22%
reduction a debt of 42% was not seen as a major problem and yet at 35% the sky
was falling down?
Misleading claim 2
Labour created the biggest deficit in the developed world
by overspending.
Firstly, the much banded about 2010 deficit of over 11% is
false. This is total borrowings and not the actual budget deficit which was
-7.7% - OBR Economic and Fiscal Outlook March 2012 page 19 table 1.2
Secondly, in 1997 Labour inherited a deficit of 3.9% of GDP
(not a balanced budget) and by 2008 it had fallen to 2.1% - a reduction of a
near 50% - Impressive! Hence, it's implausible and ludicrous to claim there was
overspending. The deficit was then exacerbated according to the International
Monetary Fund by the global banking crises
They reveal the UK experienced an increase in the deficit
as result of a large loss in output/GDP caused by the global banking crisis and
NOT as a result of the bank bailouts, fiscal stimulus and bringing forward of
capital spending. It's basic economics: when output falls the deficit
increases.
Misleading claim 3
Our borrowing costs are low because the markets have
confidence in George Osborne's austerity plan and without it the UK will end up
like Greece.
Yes, the markets have confidence in our austerity plan and
that's why we have lost our 3 star rating and PIMCO the worlds largest bond
holder have been warning against buying UK debt.
Misleading claim 4
Sheffield LibDems
claim the Council have huge reserves, we don’t we only have 11million as a
contingency unallocated fund,
We are spending
2.2million on fancy offices for Councillors we are not we are saving millions
of pounds an accommodation rationalization strategy.
Overall, when the facts and figures are put into context
these juvenile deficit narratives and sound bites ("mere words and no
evidence") simply fail to stand up to the actual facts. The deficit myth
is the grosses lie ever enforced upon the people and it has been sold by
exploiting people's economic illiteracy.
Cameron and the Lib Dems are playing the blame game to
depress confidence and growth to justify austerity using austerity as
justification for a smaller state to gain lower taxes.
Who is paying for this? The poorest people in Sheffield and
in the North of England.
So Dave, Gideion and Nick stop plan A be fair to the people
of Sheffield, and the Country and listen to the financial markets and change
course.
"If you tell a lie big enough and keep repeating it,
people will eventually come to believe it" Joseph Goebbels 1938
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