Tories beg for more recession

What makes my day is the sweet sound of Tory fury on the economy. It may only be 0.001% growth, but it is too early dammit. "We are badly prepared for recovery" grimaces Osborne. Too right you are, the last thing you want is any recovery before the election.

Now Osborne may have a point that this government deserves no credit. Governments don't fix recessions, they sit them out. It wasn't exactly a grand achievement of Brown to inject a fiscal stimulus - it is no hardship for a government to spend all of the next government's money as well as your own. It is some hardship for the rest of us of course, carrying that extra debt, but that has to be balanced against the benefits of the stimulus.

There is a fine economic judgement to the question of how much a government should borrow during a recession to keep the economy going. But this is swamped by the crude political judgement - spend the money now on Labour priorities: ID cards, dodgy IT, tax credit fiascos, harassing photographers, etc, so there is less for the Tories to spend later on their political priorities: rich, married, dead people.

Let's face it, the public sector deficit is breathtaking, and Labour is to blame. Gordon Brown way before the credit crunch had become less like, er, Gordon "prudence" Brown and more like Ken Clarke. The Tories are quite justifiably furious about it, as we all should be. But they'd rather we didn't think too hard about the difference between the state of the public finances and the state of the economy.

Greens and Keynes: total muddle

You'd think it would be a simple question. Do the Greens support the fiscal stimulus to get the economy growing again, or do they, like the Tories, consider it more important to balance the budget sooner?

Logically, as the Greens are not supposed to be that keen on economic growth anyway, you would expect the latter answer. But that has to be weighed against visceral knee-jerk opposition to the Tories.

So I've been intrepidly commenting on Green blogs trying to get to the bottom of this. Natalie Bennett at Philobiblon was cheering the return of Keynes but wouldn't explain whether she wanted the growth that Keynesianism is thought to deliver.

When Jim Jay attacked Cleggy over the "savage cuts" remark, I asked whether opposing growth won't mean even savager cuts in the long run. And I get some vague guff about a "paradigm shift away from a capitalist economy", which is a rather vague answer to quite a specific question.

And now Rupert Read adds mud to the water with a pithy condemnation of growth. So is he against the fiscal stimulus? He wouldn't say.

This muddle is all the more surprising when we consider that it would actually be quite easy for no-growth Greens to come up with a clear and consistent position. If you think that the Tories are correct that balancing the budget now is better for prosperity in the long run, then go with Keynsianism. And if you think the Keynsians are right that a fiscal stimulus now is better for prosperity in the long run then go with balancing the budget. You'd have to half agree with the Tories either way, and I guess this is the problem.

Now it turns out that growth figures are about how much the goods and services we supply each other are worth to us, and not about how much environment is destroyed, and so the greens really ought to be a bit more specific and focus their attentions on the actual destruction of the environment rather than on an aggregate statistic like GDP that includes a great many good and unobjectionable things.

But no. Far from being more specific, their solutions just get vaguer. Paradigm shifts. Alternatives to capitalism, as yet unspecified. Read's suggestion of a stimulus to stabilise the economy is at least specific, but suggests that his green new deal should stop dead as soon as growth figures go positive.

Often on specific policies the Greens sound like what is simply a high tax-and-spend party. And this too, would make sense particularly if you want to strangle the economy. But ask them about economics or political philosophy, and they will never say this. Why choose this vague waffle over a simple policy that meets your objectives? Is some deeply held contradiction at work here?

This is a breathtaking shortcoming for what claims to be a serious political party. What have they been thinking about for the last 20 years?