Feed the goose

Labour seem destined to return to historic form on economic management over the next couple of years. The strong economy that they acknowledge inheriting from the Conservatives (the longest period of sustained economic growth since the 18th Century started in 1992) seems to be slowing, down to 2.8% in the first quarter of 2005 whilst retail sales continue their decline, down 0.1% on the month in March. Recently the Financial Times worryingly showed that British competitiveness had actually declined since 1997. Meanwhile, demands for increased state spending apparently have no limit with the result that public sector borrowing for the year would be £34.5bn. Is this economic record really how Labour wish to be remembered in the history books? At this rate, the economy the Conservatives inherit in 2009 could be strikingly similar to the one they inherited in 1979.

Labour would do well to remember that the goose of private sector wealth creation needs to be properly fed if it is to continue laying ever increasing golden eggs.