Last night I debated this on Richard Bacon's Five Live show with Tory blogger Shane Greer. Yesterday saw a record increase in the number of unemployed in the UK. The reasons for the increase in unemployment are manifold, not least that Britain is suffering together with the rest of the world. Also that not many people spotted this coming.
There is a clear differential between Labour offering business and individuals support, including the holiday on business rates for small businesses; and the Tories offering no alternative. There is also a huge difference between today's recession and those of the 1980s. Before mass privatisation the government was directly responsible for employing huge swathes of the population - and then making them unemployed - when this is no longer the case.
The government here is also ensuring that wide scale public sector construction projects, like Building Schools for the Future and Crossrail continue.
Globalisation also means that we're under ever increasing pressure from the rest of the world to be economically competitive. At the same time, this also offers our best escape route, giving UK business the chance to trade overseas. Protectionism isn't an option.
Listen again, I'm on in the first hour.
Showing posts with label Radio. Show all posts
Showing posts with label Radio. Show all posts
Thursday, July 16, 2009
Wednesday, November 26, 2008
Can a recession ever be a good thing? Richard Bacon show discussion
Yesterday Andrew Lansley, Tory Health Spokesman, was forced to withdraw a blog entry stating that "Interestingly on many counts, recession can be good for us. People tend to smoke less, drink less alcohol, eat less rich food and spend time at home with their families." Last night I spoke from the panel on Richard Bacon's BBC Radio Five Live show about this. Saying recession is a bad thing. David Kuo said it can be.
Lansley was both misguided and insensitive. It shows that many of the Tories haven't changed. At the 1997 election the Tories said of the harsh economic climate a few years earlier "yes it hurt, yes it worked." Their premise is that job losses are a price worth paying for a stronger economy. Kou agreed, saying that many jobs are worthless. I disagree.
Our economy is based on work providing enough to pay for our living costs. Without that most people's lifestyles will fall apart. We saw in the 1980s that many families and whole parts of Britain never recovered from the closure of industry.
I accept that many people naively thought the economy, house prices and the stock market would grow continuously. This is clearly not the case. However, a recession will be bad for families, under financial pressure and facing the threat of losing their homes and jobs.
The side effect of recession is poverty, often higher crime, family breakdown, higher alcoholism and drug taking.
Of course there will be some positive side effects of recession. People will become more frugal, use less energy and waste less. This is a good thing. However, this is a nasty lesson to learn and one most people would rather avoid. I'd like to have the same discussion in a year's time and see whether the callers to the show still agreed that recession would be OK, once they'd had to suffer the effects.
You can listen again to the show here and clicking on Wednesday.
Lansley was both misguided and insensitive. It shows that many of the Tories haven't changed. At the 1997 election the Tories said of the harsh economic climate a few years earlier "yes it hurt, yes it worked." Their premise is that job losses are a price worth paying for a stronger economy. Kou agreed, saying that many jobs are worthless. I disagree.
Our economy is based on work providing enough to pay for our living costs. Without that most people's lifestyles will fall apart. We saw in the 1980s that many families and whole parts of Britain never recovered from the closure of industry.
I accept that many people naively thought the economy, house prices and the stock market would grow continuously. This is clearly not the case. However, a recession will be bad for families, under financial pressure and facing the threat of losing their homes and jobs.
The side effect of recession is poverty, often higher crime, family breakdown, higher alcoholism and drug taking.
Of course there will be some positive side effects of recession. People will become more frugal, use less energy and waste less. This is a good thing. However, this is a nasty lesson to learn and one most people would rather avoid. I'd like to have the same discussion in a year's time and see whether the callers to the show still agreed that recession would be OK, once they'd had to suffer the effects.
You can listen again to the show here and clicking on Wednesday.
Subscribe to:
Posts (Atom)