Tuesday, 10 September 2013

The Wonga recovery

Yesterday Chancellor George Osborne went to a building site and delivered his recovery speech. He has probably been working on it for months now and could contain himself no-longer. "Crisis over! I've fixed the economy!" he didn't quite crow yesterday.

By George, he's done it!

Two thoughts immediately occur. First, is it true? And second, if it is true isn't 20 months before the next general election too soon to start blowing your own trumpet. Surely the good news needs to be hoarded until closer to the time. Let's face it, if we're on the way up then the news will only get better for the waiting. At the very least he could have waited a couple of months and done it during the Autumn Statement to a packed House of Commons.

And is it true? Well, GDP has gone up by £9 billion in the last quarter, and they only sprayed £35 billion of borrowed money into the economy over the same time period. And employment is up, if you count the five and a half million people on zero-hour contracts as "employed". And house prices are rising - in London at any rate.

Of course, if we really are in recovery then it's time to unwind the £350bn of quantitative easing and raise the base rate from its lowest ever value of 0.5% - isn't it George?

But, no, I don't think he's going to be doing that anytime soon.

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