Will they ever come clean?

Will the new Government finally come clean about the extent of our economic dire straits?.

Stand by for the budget, and please remember that David Laws is not, as far as I know, a relative. Please also remember that the last budget made some heroic assumptions about economic growth and tax revenues over the next few years. The situation is almost certainly a lot worse than the last Government admitted.

There is a huge body of academic opinion that says that the best and quickest way out of a hole is to stop digging, ie to start to cut public spending. I prefer Winston Churchill’s crack that trying to make the economy grow by increasing taxes is like standing in a bucket and trying to lift it up by the handle, but you’ve heard that one before.

The first test of the new politics will be whether Cameron and Clegg are prepared to come clean on the dire economic situation, or whether they will go on fudging it as they both did – disgracefully – throughout the election campaign.

When they stand up and tell us that we’re all going to get poorer, and that the people who have been careful and saved some cash for their old age are going to suffer disproportionately, I will believe that something has changed.

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