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Invitation to George and Dave to review their growth policies Invitation to George and Dave to review their growth policies
(3 months later)
To reduce the national debt, we need an expanding economy and tax base (The cuts that keep coming, 27 June). Expanding production and employment is the natural result of expanding demand, which is lacking. The government is in the unique position of being able to initiate investment directly and of creating the money to finance it. A sustained commitment to public investment, creating incomes and the ensuing demand for mass-produced goods, would unlock private investment and a process of growth, and ability to slowly begin deficit-reduction from a position of economic strength.
Francis Westoby
Hitchin, Hertfordshire		To reduce the national debt, we need an expanding economy and tax base (The cuts that keep coming, 27 June). Expanding production and employment is the natural result of expanding demand, which is lacking. The government is in the unique position of being able to initiate investment directly and of creating the money to finance it. A sustained commitment to public investment, creating incomes and the ensuing demand for mass-produced goods, would unlock private investment and a process of growth, and ability to slowly begin deficit-reduction from a position of economic strength.
Francis Westoby
Hitchin, Hertfordshire
• When faced with over 2.5 million unemployed, yet only half a million vacancies, it is surely obscene for a chancellor to lecture the unemployed about how they must attend jobcentres every week, must have CVs ready before attendance, wait seven days before benefits and so forth. However pretty the handwriting, however eloquent at interview, however strong the motivation, at least 2 million people would be without work, were all vacancies filled. That's the hard fact that the government should stop seeking to evade. It should recognise the plight of the unemployed instead of blaming them for being unemployed.
Peter Cave
London		• When faced with over 2.5 million unemployed, yet only half a million vacancies, it is surely obscene for a chancellor to lecture the unemployed about how they must attend jobcentres every week, must have CVs ready before attendance, wait seven days before benefits and so forth. However pretty the handwriting, however eloquent at interview, however strong the motivation, at least 2 million people would be without work, were all vacancies filled. That's the hard fact that the government should stop seeking to evade. It should recognise the plight of the unemployed instead of blaming them for being unemployed.
Peter Cave
London
• The flickering light at the end of the tunnel is the banking industry coming – unintentionally – to the rescue. In recent months there has been unexpected buoyancy in retail activity and a boom in sales of new cars. Both of these trends can be explained by the drip-feeding into consumers' pockets of about £14bn in compensation payments to be spread over two years or so for mis-sold payment protection insurance. That is approaching 1% of GDP and probably accounts for much of the small improvement in GDP in the first quarter of this year.
Harvey Cole
Winchester, Hampshire		• The flickering light at the end of the tunnel is the banking industry coming – unintentionally – to the rescue. In recent months there has been unexpected buoyancy in retail activity and a boom in sales of new cars. Both of these trends can be explained by the drip-feeding into consumers' pockets of about £14bn in compensation payments to be spread over two years or so for mis-sold payment protection insurance. That is approaching 1% of GDP and probably accounts for much of the small improvement in GDP in the first quarter of this year.
Harvey Cole
Winchester, Hampshire
• Why is it politically taboo even to consider raising income tax? Labour and Conservative governments did this regularly when faced with budget deficits in the past. The case would need to be well made. But for Labour and the Lib Dems to continue to assume that most people are so soaked in individual selfishness as to refuse to vote for a party that would contemplate raising taxes, particularly for the better off, to protect vital services is surely to go down a mistaken and politically cowardly path?
John Gordon
Wallingford, Oxfordshire 		• Why is it politically taboo even to consider raising income tax? Labour and Conservative governments did this regularly when faced with budget deficits in the past. The case would need to be well made. But for Labour and the Lib Dems to continue to assume that most people are so soaked in individual selfishness as to refuse to vote for a party that would contemplate raising taxes, particularly for the better off, to protect vital services is surely to go down a mistaken and politically cowardly path?
John Gordon
Wallingford, Oxfordshire
• Growth the chancellor wants, and growth he will get. Food bankers up and down the country will expect his latest set of measures to produce fairly spectacular growth in the numbers of those in food poverty, and accelerated growth in the number of food banks. Serving a largely rural area and without a central "shop" where clients can collect their parcels, we deliver them. It is in those brief encounters that we see the gut-wrenching needs of some people – needs which a parcel of food, however substantial, comes nowhere near satisfying. George, during your summer recess, would you and Dave care to join us in making some deliveries?
Patricia and Peter Simmons
North Berwick, East Lothian		• Growth the chancellor wants, and growth he will get. Food bankers up and down the country will expect his latest set of measures to produce fairly spectacular growth in the numbers of those in food poverty, and accelerated growth in the number of food banks. Serving a largely rural area and without a central "shop" where clients can collect their parcels, we deliver them. It is in those brief encounters that we see the gut-wrenching needs of some people – needs which a parcel of food, however substantial, comes nowhere near satisfying. George, during your summer recess, would you and Dave care to join us in making some deliveries?
Patricia and Peter Simmons
North Berwick, East Lothian
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