So I’m in London, for a brief visit before heading on with the European safari, reading the afternoon zero-price newspaper on the tube that contains an article on Nick Clegg’s keynote speech to the annual Liberal Democrat Conference. This comment caught my attention:
We have taken big and bold steps to support demand and boost growth. And we stand ready to do so again until self-sustaining growth returns.
As the great philosopher Joda said, “That is why you fail.”
The UK has experienced a double dip recession – so you have to wonder how the Clegg strategy has worked out. The key to economic recovery is not on the demand side but on the supply side. It is here that Clegg gets it exactly wrong. He then rules out reducing the tax rate:
If we ask people to take less out or pay more in, we’ll start with the richest and work our way down, not the other way round.
In other words, the UK government will not be cutting spending.