The recession is over. Long live the recession!
Posted by michael on January 26, 2010
The worst of the recession is not over. Apart from the less than expected growth figure, which will probably adjusted in the next few weeks, there is very little else going for the UK economy!
But in my view it is the way that this lame government has chosen to focus almost entirely on the banking system that is going to prove to be the most damaging of Brown and Darling’s policies!
Apart from a couple of relatively sensible policies that a number of governments around the world adopted, there has been very little from New Labour to help anyone through the recession.
The scrappage scheme was welcome but limited. What a shame the scheme was not restricted to green, environmentally friendly cars to begin the process of cleaning up the environment!
But the real issue is with the banks. This New Labour government forced the banks to increase their capital levels. The consequence of this was that many businesses had their existing loans withdrawn or were refused the new loans and overdraft facilities required to keep their businesses and cash flow going.
How many small businesses were forced out of business by Brown and Darling’s focus on keeping the banking system going at the expense of the smaller businesses? How many of their employees lost their jobs as a result?
When these smaller UK manufacturers and suppliers go bust then the employees and the management are forced to depend on the benefits system. This increases the UK debt. Families are often unable to pay their mortgages or rent. How many families were unable to pay their mortgage and ended up being housed at the expense of UK tax payers?
How is the UK economy now expected to grow when so many of the businesses that were present before the recession have now stopped trading simply because the UK banks would not support them?
The people of the UK have been allowed to suffer whilst the government put most of the money and most of their efforts into protecting the banks.
When will our government allow the banks to start lending money, at reasonable rates, to small businesses to encourage them to expand. The same question applies to new start up businesses being given the funding and credit facilities that they require.
For Brown and Darling to increase the banks capital and reserves at the cost of many businesses and jobs is inexcusable. Apart from anything else banks do not vote in general elections, people do!
Do we now have enough people who can afford to set up new businesses? Even if people want to get new businesses going, the banks will most probably refuse to support them.
This useless government has failed to support businesses who need finance and loans to stay in business . We cannot expect much help from our greedy bankers!
Brown and Darling have made a real mess of the UK economy. This is why they do not deserve to be in government again!
