Economy in Crisis

Posted: March 5, 2009 in Liberal Democrats, Small Business

Mike Simpson says, “I met a small-businessman in Haslemere recently. He was agonising about how to respond to falling orders. He was considering cutting his Directors’ salaries in half or laying off staff or probably having to do both.

That is the kind of human cost faced every day by businesses. The Conservatives have nothing to offer.

Complete the poll at the bottom of this message to tell me what you think are the big political issues.

The Liberal Democrats are making the running on responding to the financial crisis, not least because of our superb Shadow Chancellor Vince Cable.

Many people remember only too well the last time the Tories were running our economy and how little they helped ordinary people suffering through hard economic times, including mass unemployment. The instincts of the Conservative Party are the same today – let the market rule – and look where the unregulated free-market has got us!

In fact it was Margaret Thatcher who started the process of financial de-regulation that led to unsustainable bank lending.

Many ordinary people have been saying for years that the credit boom was bound to end in tears. In the 1990s I managed housing for young people with high support needs. Many had been homeless or had drug problems. Most were unemployed. My staff and I were regularly shocked by the mail that residents received – offers of credit cards for 18 to 25 year olds with barely two pence to rub together! I personally worked with several who had built up thousands of pounds of debt.

As an Economics Graduate I have always been a supporter of John Maynard Keynes’ economic policy ideas, but he was out of fashion in the Tory years. Instead the ideas of Milton Friedman were allowed full reign. And that is the beginning of the story of this current financial crisis…

One thing’s for sure – the Tory concept of unregulated banking has been an unmitigated disaster. It was also heartless in its application across the world. Now new solutions are needed for these uncertain times. Read about our Liberal Democrat prescription by clicking here: ‘Cable rebukes ‘zombie government’ for betraying taxpayers’

Complete this poll to indicate what YOU think are the biggest political issues facing people today in this area.

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