So, the Tories are currently making hay on the economy, while the black clouds are overhead. Unfortunately it’s all drivel, and specifically, it’s drivel because the current economic crisis is entirely the result of the Tory economic settlement. The promise of infinite free money from property was the core Thatcherite proposition, and its costs (specifically, high interest rates and a high pound) were traditionally covered by North Sea oil. Of course, rising house prices aren’t actually money, just a way of borrowing from your kids, with the special feature that they don’t get any schools or railways for the borrowing. But the Tory achievement was to get an economy specialised in property speculation accepted by both major parties. And, as we have seen, they have very good personal reasons to pretend that the government could just stick the bubble back together if it wanted.
All oppositions pretend something like this, of course; but it’s incumbent on them to have some idea of the difference between bullshit and government. Just look at the Tories’ performance over Northern Rock. To recap, they thought the Bank of England’s money was taxpayers’ money in August but not in January; they thought the Bank of England was an independent agency in August but under ministerial line management in January; they imagined the Bank of England had vastly more money that it does throughout. Thank God for the civil service.
And even if you grant them a huge pass on administrative reality, their stated positions are wildly incoherent. In the pastel corner, there’s Huggy Dave’s quality of life reports. In the phlegm-spatter corner, there’s Mad Jack Redwood’s report on how the economy can be revived by letting private “care homes” pack in more codgers per square foot. What an invention – the battery granny farm. Will the staff get Dave from PR’s improved work-life balance? Bollocks they will. However, Greasy Phil Hammond’s specialist NHS property development firm, Castlemead Developments Ltd, would presumably find investments in this field rather tastier. More seriously, what the hell does Mad Jack think our problems are? Aren’t they more about the tradable sector, and what happens to the balance of payments with an energy import bill and tanking City volumes?
None of this should be any surprise. Look at the chief economist of chouchou snackthinkers Policy Exchange. What has he discovered? Well, his tube train was late, and so he’s written “England: An Obituary on a Great Country”. Seriously. And he apparently thinks “Britain” supplies IKEA goods and services, rather than a huge Swedish multinational. This used to be the quality of a middling to poor Tory newspaper columnist. Now it’s their intellectual foundation.