On being Conservative

Well, in fairly quick order, we seemed to be a country full of citizens who believe that the Coalition Government's financial cuts are too harsh, or even unnecessary, and that we should, as a nation, continue to spend more than we earn.  So, let me state the facts as I see them and invite a torrent of alternative views.

For the last 10 or more years we in the UK have had the (false) luxury of exporting our inflation to, mostly, China, India and South East Asia.  The days of reckoning have now arrived as those territories seek to progressively move towards enjoying our standards of living.  We have inflated our property prices (see Ireland and Spain as examples) and have, in global terms, paid ourselves too much.  It has been easy to blame the bankers, who do deserve part of the blame, although the full blame attaches to any of us who have lived beyond our means or not done enough to protect those less able than ourselves.

The World does not owe the UK a living.  To pretend otherwise is an insult to all those countries whose GDP per person is below the UK's.

We have, in recent years, been a net borrower whilst countries such as China have financed our excess standards of living, by being net lenders.  Payback time has now arrived.

We face two simple choices.  We can follow the Greek, Irish or Iberian Peninsula models whereby we accept lack of international competitive status, an inability to reduce our debts and an eventual sovereign debt crisis.  Alternatively we can 'bite the bullet' and reduce our debts and, most  importantly, stop wasting so much money on interest payments.  Money which would be much better spent on improving public services.

There are different approaches to debt reduction.  The USA has chosen to engage in Keynesian financial simulation; the UK has embarked on a monetary policy.  Only time will tell which approach yields the best results.

The cuts are, and will be, painful.  The primary duty of national and local government, beyond ensuring the security of the State, is to protect the more vulnerable members of our society.  This does not reduce or remove the very difficult choices that have to be made.

As a conservative I believe, based on all the evidence I can access, that the Coalition Government has chosen the least risky path in restoring the UK's financial soundness.  I am surprised when the Chancellor talks about the absence of 'Plan B'.  Whilst an alternative course of action may be more risky I do recognise that as the financial and economic environment changes that there will be necessary touches to the tiller to keep the ship on course.