Douglas Carswell's Blog

When do we try a Conservative approach to the economy?

So, the deficit reduction strategy is failing to cut the deficit. The plan to cut public debt will massively increase it over the course of this Parliament. And the growth strategy lacks growth.

Since the financial crisis struck in 2007, governments of all three parties have tried different rhetoric, but the same basic approach

Both the current, and the previous administration, have tried to boost recovery by monetary and (to a greater or lesser degree) fiscal stimulus.  It has failed.

They have tried to print money.  It has raised prices, not output.

Both tried to solve a problem caused by over-consumption by encouraging more consumption.

Faced with a shortage of credit, they held down the price of credit, then wondered why that restricted the supply.  This left members of each administration toying with the idea of rationing credit - or if you prefer "easing".

Perhaps it is time for a different approach?  Maybe the government needs to try something more than Alistair Darling economics, plus or minus a few percentage points?     

Rather than recycling the failed thinking of the Treasury mandarinate, fixing our economy requires a radical approach based on supply-side reform and sound money.

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