George Osborne needs shock-and-awe tax cuts to avert a 1970s-style disaster

Together with the Bank of England, Osborne’s belief that cheap money and ultra-low rates are the only way forward has helped prop up tens of thousands of “zombie” firms, delaying the economy’s readjustment.

by Allister Heath, The Telegraph:

He could have been referring to British economic history, and to the increasingly depressing similarities between Chancellor George Osborne’s failure to get to grips with the economy and that of his Tory predecessor in the 1970s, Anthony Barber, whose errors, compromises and pusillanimity helped let the Labour Party back in.

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The circumstances are, of course, very different but the notes equally false. Both men were part of a small, consensual cadre of politicians who wasted a historic opportunity to repair a broken economy; both were trapped by the intellectually bankrupt conventional economics of their time, as well as by a crippling inability to take on vested interests; both failed to stand up for their core electorate of aspirational men and women; and neither succeeded in dragging Britain, kicking and screaming if necessary, into an economic model ripe for the modern era.

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