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George Osborne is a magician – despite his record he’s seen as a success George Osborne is a magician – despite his record he’s seen as a success
(34 minutes later)
George Osborne should be regarded as one of the worst chancellors in modern British history. When the Tories came to power in 2010, Osborne choked off the then gathering economic recovery with an emergency austerity budget. Indeed, the “recovery” under his “long-term economic plan” is the most sluggish since the 19th century. GDP per capita remains lower than before Lehman Brothers imploded. Not since the Victorian era have workers’ pay packets flatlined for as long as they have under Osborne. He promised to eliminate the deficit over the course of a single parliament; but didn’t manage half of it, which was what he ridiculed Labour for offering in 2010. His government pledged to start paying off the country’s debts, but he added more than every single Labour chancellor in history put together. Under his chancellorship, productivity has stagnated disastrously: in much-derided France, productivity is 27% higher. How can this record be regarded as anything other than dire? George Osborne should be regarded as one of the worst chancellors in modern British history. When the Tories came to power in 2010, Osborne choked off the then gathering economic recovery with an emergency austerity budget. Indeed, the “recovery” under his “long-term economic plan” is the most sluggish since the 19th century. GDP per capita remains lower than before
Lehman Brothers imploded. Not since the Victorian era have workers’ pay packets flatlined for as long as they have under Osborne.
He promised to eliminate the deficit over the course of a single parliament, but didn’t manage half of it, which was what he ridiculed Labour for offering in 2010. His government pledged to start paying off the country’s debts, but he added more than every single Labour chancellor in history put together.
Under his chancellorship, productivity has stagnated disastrously. In much-derided France, productivity is 27% higher. How can this record be regarded as anything other than dire?
He pledged to start paying off the country’s debts but added more than every Labour chancellor in history put togetherHe pledged to start paying off the country’s debts but added more than every Labour chancellor in history put together
But it isn’t seen like this at all. Osborne is now in his pomp, presented – admittedly by a largely supine media – as a man vindicated, who took difficult decisions in the face of adversity, decisions that have been proved correct. Yes, his transformation has been aided by a disastrously ineffective opposition, but Osborne is a genius at politics – and the left has to learn from him. But it isn’t seen like this at all. Osborne is now in his pomp, presented – admittedly by a largely supine media – as a man vindicated who took difficult decisions in the face of adversity, decisions that have been proved correct. Yes, his transformation has been aided by a disastrously ineffective opposition, but Osborne is a genius at politics – and the left has to learn from him.
Take this week’s budget. It has been the argument of many on the left – myself included – that in-work benefits are subsidising poverty pay in our low-pay country, where at least half of those in poverty are in work. By introducing a living wage, we argued, we would save considerable amounts of taxpayers’ money: when a low-paid worker’s paypacket increases, the amount they receive in tax credits automatically reduces. But Osborne has subverted this argument ingeniously. He hiked the minimum wage – yes, a vindication for campaigners – but to a level that will not be a living wage at all. But when the left makes this point, we simply look like we are quibbling. Labour offered £8 an hour by 2020, which was derisory (as many of us pointed out at the time ) and now you’re kicking off because £9 an hour by 2020 doesn’t quite meet the technical specifics of a “living wage”? Take this week’s budget. It has been the argument of many on the left – myself included – that in-work benefits are subsidising poverty pay in our low-pay country, where at least half of those in poverty are in work.
By introducing a living wage, we argued, we would save considerable amounts of taxpayers’ money: when a low-paid worker’s pay packet increases, the amount they receive in tax credits automatically reduces.
But Osborne has subverted this argument ingeniously. He raised the minimum wage – yes, a vindication for campaigners – but to a level that will not be a living wage at all. But when the left makes this point, we simply look like we are quibbling. Labour offered £8 an hour by 2020, which was derisory (as many of us pointed out at the time ), and now you’re kicking off because £9 an hour by 2020 doesn’t quite meet the technical specifics of a “living wage”!
And then he imposes an eyewatering attack on in-work benefits, appropriating the left’s argument against corporate subsidies as he does so, leaving millions of low-paid workers far worse off.
But Osborne’s opponents are forced to deploy a morass of statistics to demonstrate how, in fact, despite the welcome increase in the minimum wage, the hammering of in-work benefits will drive millions of workers further into hardship. It is a complicated argument to make, leaving Osborne able to hide one of the biggest attacks on low-paid workers in a generation behind a much trumpeted “living wage”.
Just look at Osborne’s record. He backed every single penny of Labour’s spending until the end of 2008 yet now presents Labour’s “overspending” as the cause of Britain’s economic plight. He wrong-footed Gordon Brown in 2007 by promising a cut in inheritance tax that would benefit only the top 6% or so of estates – again, a tough rebuttal to make. After easing up on austerity, which had simply sucked growth out of the British economy, sustained weak growth returned – but any growth looked like a triumph after prolonged stagnation.
Above all else, Osborne forces his opponents into a defensive posture. That’s where the left all too often fails. I note the Greens are proposing the abolition of inheritance tax and the introduction instead of a tax levied according to the wealth of the recipient, not the estate of the person who has died. That’s an example of how, Osborne-like, the left can go on the offensive.
Until we do, look in awe: Osborne is a magician. He turns myths into common sense. He spins policies that benefit the richest into rewards for aspiration. He transforms his disastrous record into success. It’s a story of triumphant failure.
Related: George Osborne introduces new 'living wage' but cuts working-age benefitsRelated: George Osborne introduces new 'living wage' but cuts working-age benefits
And then he imposes an eye-watering attack on in-work benefits, appropriating the left’s argument against corporate subsidies as he does so, leaving millions of low-paid workers far worse off. But Osborne’s opponents are forced to deploy a morass of statistics to demonstrate how, in fact, despite the welcome hike in the minimum wage, the hammering of in-work benefits will drive millions of workers further into hardship. It is a complicated argument to make, leaving Osborne able to hide one of the biggest attacks on low-paid workers in a generation behind a much trumpeted “living wage”.
Just look at Osborne’s ingenious record. He backed every single penny of Labour’s spending until the end of 2008 and now presents Labour’s “overspending” as the cause of Britain’s economic plight. He wrong-footed Gordon Brown in 2007 by promising a cut in inheritance tax that would only benefit the top 6% or so of estates – again, a tough rebuttal to make. After easing up on austerity, which had simply sucked growth out of the British economy, sustained weak growth returned – but any growth looked like a triumph after prolonged stagnation.
Above all else, Osborne forces his opponents into a defensive posture. That’s where the left all too often fails. I note the Greens are proposing the abolition of inheritance tax and the introduction instead of a tax levied according to the wealth of the recipient, not the estate of the person who has died. That’s an example of how, Osborne-like, the left can go on the offensive. Until we do, look in awe. Osborne is a magician. He turns myths into common sense. He spins policies that benefit the richest into rewards for aspiration. He transforms his disastrous record into success. It’s a story of triumphant failure.