Liam Byrne demonstrates his fiscal ignorance

Posted on 7 June 2010 by Ray Boulger

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In his speech today Prime Minister David Cameron warned of "difficult decisions" on pay, pensions and benefits, set out the reasons for the "painful" cuts ahead and said that dealing with the deficit would be "unavoidably tough" and affect "our whole way of life".

In response Shadow chief secretary to the Treasury Liam Byrne claimed that Labour had "stopped recession becoming depression" and that “the coalition has inherited an economy that is growing, borrowing which is falling.”

If the ex Chief Secretary to the Treasury thinks that he bequeathed to the new Government an economy in which “borrowing is falling” that perhaps explains his contribution to leaving the economy in such  mess.

The truth is that borrowing is still rising at a frightening pace. Perhaps Mr Byrne doesn’t understand that if borrowing was really falling the National Debt would be reducing and the Government wouldn’t have to make cuts which will affect "our whole way of life".

Of course Mr Byrne may have confused “falling” with “the rate of increase is falling” and if he doesn’t understand the difference between the two it may help to explain why he also thought it was clever to leave a note for his successor saying “there’s no money left.”


Categories: Personal finance, House and home, Miscellaneous


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