Tuesday, March 16, 2010

DEFICITS - The Good, The Bad & The Ugly

News this morning that the European Commission wants Britain to cut the national deficit faster than proposed by the present government has put the issue with which most UK voters are most concerned - the economy stupid - firmly centre stage again, thank goodness !

However, it is not just New Labour and the Liberal Democrats who favour a more softly softly approach to tackling the financial deficit, so do many bankers. The Conservatives, on the other hand, have declared firmly that they do not intend to be dictated to by the money markets.

Meanwhile, the public need to understand the implications of different approaches to dealing the deficit so voters can make an informed choice at the ballot box. What is clear is that the consequences will be serious and far reaching whatever approach is taken.

In short, we can look forward to "The Good, The Bad & The Ugly" - to continue my analogy to "The Dollars Trilogy"* - whoever wins the Election.

The real choice is between a short, sharp shock of the kind favoured by the Conservatives - or economic shock therapy too far for some - and pain management from the other main parties, which may not in the end deliver an economic cure.

* A Fistful of Dollars, For a Few Dollars More (see below) and The Good, The Bad & The Ugly

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