Kick-start economy

TINA used to be the war cry of Margaret Thatcher, when leading a hard right Westminster Government from 1979 to 1990. “There Is No Alternative” to austerity, unemployment and misery for many. Germany, and a number of other northern European countries, went down a different road in the 1980s and 1990s.  

Sure, they had some difficulties, but they managed to keep the bulk of their engineering and production industry expertise. They now have economies which are much more balanced than that of the UK.                              

On 7 May 2015, the UK is due to have another general election. The Tory/Lib-Dem Ccalition and Labour are both preparing to fight the election on austerity, the more the better. The Lib Dems and Labour have both moved well to the right over the last 5-10 years or more. In 2015 they have nailed their colours to the mast of greater austerity. They have even accused the SNP of being “financially irresponsible”. 

Last week, SNP leader Nicola Sturgeon went to London to outline a plan that provided an alternative to Westminster’s unfair austerity agenda. The London media were not used to hearing the message from the social democratic middle ground, of politics.                                                                                 

The SNP are expected, if polls are accurate, to gain a number of seats from the Lib Dems and Labour in Scotland, while Labour and the Tories are neck and neck in England. The SNP, rather than UKIP, may well hold the balance of power in the next parliament.                                                                                                                       

“A strong team of SNP MPs can put heart back into Westminster policy and be a progressive force for change, in the UK,” said Nicola. “The disabled, sick, unemployed, minimum wage earners would no longer pay the highest price, of austerity.”                                                                                          

The real cause of the rush to higher government borrowing was the collapse of tax receipts, as more and more people became unemployed or under employed, or worked for minimum wages, over the past 10 years.                                                                      

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The message, essentially, is that by borrowing an extra 0.5-1 per cent and investing this in infrastructure projects could kick start the economy at a time of very low interest rates. Investing in the building of new schools, houses, transport projects could kick-start the recovery by having more people in employment, thus  increasing the tax receipts. Many economists, and others, in UK and Europe are coming round to this view. 

Both locally and throughout Scotland, the Lib Dems and Labour can expect the strongest challenge to their power and inertia for many years from the SNP.

John Mowat

Springfield Drive, Kirkwall