It has been apparent for a long time that the left in Britain have been advocating an economically as well as morally bankrupt ‘alternative’ to the Government’s deficit reduction programme. However news from France provides the killing blow to the ‘tax and spend’ for growth bandwagon that the economically illiterate have been readily jumping on. One year ago today François Hollande was sworn in as French President, it is fitting on this anniversary we should get the news that France has entered a triple dip recession. Even more pleasing is that it comes in the same week that the UK is confirmed to not only have avoided its own triple dip recession, but a double dip one too.
As entrepreneurs and wealth creators flee France in droves as the French consider even more taxes (after trying to bring in an unconstitutional 75% super tax first on individuals and then on businesses they are now considering taxing mobile phones) the UK is benefiting not only from French job creators fleeing economic collapse, but also global commerce lured by Osborne’s more business friendly tax regime.
France, once held up as a symbol for anti austerity economics is now the albatross around the left’s neck. It is the shining example that spending for growth is as a catastrophic failure, or as Churchill famously put it ‘a nation to try to tax itself into prosperity is like a man standing in a bucket trying to lift himself up by the handle.’
Today’s figures are the final nail in the coffin that is the anti austerity movement. Cameron, Osborne et al have resoundingly won the argument both in theory and in practice. When they have tried taxing less it has brought jobs and business, when they have tried spending less private sector employment soared . The UK’s economic woes have come from when the Chancellor was not radical enough and the successes from when he has done that little bit more. Austerity economics works, now let’s actually have some please.