by Jonathan Todd

Labour has to be the party of optimism. Which should include being optimistic about the ingenuity of business, especially when combined with extraordinarily lax monetary conditions and a low pound. George Osborne anticipates Labour pessimism on this and we should deny him.

We know that the cuts are too deep and fast. We know that the best government response to economic challenges isn’t brutally to minimise government, but strategically to target the state’s resources to maximum effect. Having emphasised these points, we can be confident that the public know that we know this.

But in stressing these points we should avoid creating a blind spot: that our only economic expectation for coming years appears to be unremitting disaster. This would have us seem to be talking the country down, which is never a good thing, and undermine our claims to optimism. Also, if this expectation turns out to be false, it would leave us – to apply Peter Mandelson’s one club golfer analogy – on the 18th green of this parliament with only the driver of big government in our club bag. (more…)