Austerity

Bill Clinton’s declaration that ‘the era of big government is over’ summed up the late 1990s political zeitgeist. Centre-left political parties could win if they accepted the small state model bequeathed by the Thatcher-Reagan consensus. Now things feel very different, as I say in the Times today. The stimulus Joe Biden signed into law is huge, $1.9 trillion (£1.4 trillion): three times larger than the financial hole created by Covid. Here there has been nothing as dramatic. But it is still telling that Boris Johnson is insistent that the public finances won’t be brought back into order by ‘austerity cuts’. Big government appears to be back. Politics is going to become

How will the UK recover after lockdown? Although social distancing is expected to continue for months, talk has turned to how the government will deal with its coronavirus debts. The Treasury is seeking to raise £180 billion over the next three months to meet its pledges – putting the UK on course to see its budget deficit rise to a level never seen before in peacetime. Some estimates put borrowing this financial year at over £300 billion, far outpacing the years following the financial crash. This has led a number of public figures to predict a return to the Cameron and Osborne era with mass cuts in the years ahead. However, when Boris Johnson was

The Tory party is suffering from an intellectual crisis of confidence. Before 8 June, its collective view was that Jeremy Corbyn was simply too left-wing to be a serious candidate for the prime ministership in modern Britain. He hadn’t learnt the lessons of Labour’s defeats in the 1980s, and while he might excite a noisy 35 per cent of the electorate, thought the Tories, he’d never be able to put together a general election-winning coalition. Corbyn, however, came closer to victory than any Tory had expected. His Labour party got 40 per cent of the vote and took seats off the Tories. Not one of them had seen it coming and,

Daily they drop into my email account — alongside the more obviously useful stuff about how I might elongate my penis or ensure it performs with greater fortitude than at present, and the charitable offers from women who live ‘nearby your house, Roderick’ and apparently wish to test whether or not those previous solicitations I mentioned have been acceded to with success. Alongside all that stuff are the fecund exhortations from a bunch of online campaigning organisations. Click democracy, a sort of spastic form of activism whereby you stick it to da man simply by pressing a button. They come, these missives, from the likes of Change.org and 38 Degrees. Sometimes

Seemingly missing the democratic process that returned a Tory government with a majority and an increased share of the vote, the hard left took to the streets of Westminster over the weekend to protest against austerity. However, has ‘austerity’ really hurt all of the protesters who took part? Look closely at the box one used to make their ‘no cuts’ sign: A 50 inch Sony LED TV that retails at over £600. The face of modern Britain’s dispossessed. Meanwhile rumours abound that Ed Miliband has already found a new job following his resignation as Labour leader: However, this is at best a short-lived career change as Miliband has since been spied on his

The Chancellor’s economic brain, Rupert Harrison, looked distinctly restless last night, sipping champagne in John Maynard Keynes’s drawing room. Osborne’s chief-of-staff, the architect the evil Tory austerity, did not seem entirely comfortable as he stood beneath an imposing mounted copy of The General Theory. This awkward tableau came about thanks to the launch of a book about the Bretton Woods summit by Sky News’s Economics Editor Ed Conway. The party was gathered in the very house from which Keynes departed on his way to the famous conference in July 1944. Conway said: ‘It’s quite rare to have a book launch these days. You either do it if you’re expecting a global best seller,

[audioplayer src=”http://traffic.libsyn.com/spectator/TheViewFrom22_5_June_2014_v4.mp3″ title=”Freddy Gray discusses the end of the French republic” startat=1844] Listen [/audioplayer]Last week President François Hollande, following his party’s humiliation in the European parliamentary elections (his Socialists won roughly half as many seats as the National Front), decided to cheer himself up. He left Paris and travelled to Clairefontaine to mingle with France’s World Cup football squad. ‘If you do win the World Cup final on 13 July,’ he told the millionaire players (most of whom avoid Hollande’s taxes by being paid outside France), ‘you will deserve a triumphant welcome. But we will not be able to give you the reception you will deserve, because the Champs-Elysées is

The popular pastime for financial commentators this season is sticking pins in George Osborne. To those on the left who hate everything about him, to those on the right who think he should have used the fiscal crisis as an opportunity to slash state spending far more than he did, to those in the middle who prefer their politicians to be vacillating blunderers blown by fate, and thereby easier targets, this Chancellor is pretty bloody irritating. The UK is expected to be the G7’s fastest-growing economy this year, and Osborne’s doubters at the IMF have had to admit, in a mealy-mouthed way, that they were wrong to try to point