This crisis must
spell an end to state excess
YESTERDAY was a
day of days. Hysteria gripped world stock markets,
fortunes were loat. and the world inched a step
closer to an economic
Once mighty companies were left a
shadow of their former selves, savers watched as
nest eggs evaporated and pensions shrank. the
pound continued to plummet, and the scandal over the
hundreds of millions of pounds invested by
criminally incompetent councils in dubious Icelandic
But arguably it could have been
worse. Yes ,taxpayers will have to pay the price for
years to come, but without this week's bold banking
rescue package, some of Britain's major banks would
have gone broke.
After dithering for months, Mr Brown
-who, to be fair, over the past few days has evinced
authority, gravatas and resolution -at last moved
But as the markets
have shown, Britain's action alone is
Such measures must be global.
America must build on its $700
billion bail-out by taking direct stakes in banks.
Other European countries should follow suit.
The world must also cut interest
rates still further. With commodity prices
dramatically falling, the threat of
has , for the
present, all but evaporated.
Nor should we shirk from cutting
taxes to give money back to consumers to spend on
TO SAVE JOBS
Although it hurts the Mail to say
it, in these tumultuous times, governments should
not be hidebound by fiscal conservation.
But the measures must not be aimed
at shoring up share prices. Stock markets
should be allowed to find their own level, to get
the panic out of the system.
should do instead is target the far more
significant credit markets
. If we are to
prevent the stock market contagion causing
irreversible damage to the real economy, the
priority is to
GET THE BANKS
AND TO EACH OTHER.
But when the current crisis is past
-and make no mistake, what goes down will one day go
up again -,huge concerns will remain about the right
balance between freedom in the financial markets and
the heavy hand of the STATE, This is the issue
destined to overshadow politics in the coming years.
For the Conservatives there will be
painful questions about their commitment to
and their somewhat
As the Mail argued this week
there should be a
should be set up immediately to
identify those who got us into this catastrophe.
This must be coupled with a determination to
are never again allowed to make the
PAY FOR THEIR MISTAKES.
Labour must grapple with a different
matter: its commitment to
HUGE STATE SPENDING.
There will be a temptation - and many
in Mr Brown's party are already succumbing to it -
for these events to be seen as a
INCREASE PUBLIC SPENDING.
IF THEY GET THEIR WAY BRITAIN WILL
END UP BANKRUPT.
THE TRUTH is that TODAY every PRIVATE
SECTOR COMPANY and INDIVIDUAL is TIGHTENING THEIR
THE PUBLIC SECTOR MUST SHARE THE
All those countless non-jobs
advertised in the GUARDIAN must END
THE STATE must be subjected to
exactly the same kind of ruthless purge that is now
being experienced in the COMMERCIAL WORLD.
IN the years of
affluence, we could put up
WITH ALL THIS WASTE.
Yes, there may be a
case for more spending on huge job producing capital
projects, such as
But Whitehall must
live by the same rules as
THE REST OF US.
justified, every spending decision scrutinised.
FAR FROM A BLANK
FOR THE STATE
THIS ECONOMOC CRISIS
MUST SPELL THE END OF THE ERA OF
PUBLIC SECTOR EXCESS.
that under the present financial crisis there should
be a NATIONAL GOVERNMENT in order that the
GOVERNMENT of the day does not use the means at its
disposal to its own benefit instead of the benefit
of the TAXPAYER
GOVERNMENT would also allow the best brains and
expertise from all spectrums of the political and
academic fields to pull together for the good of the
country and not as now give the present incumbent of
No10 the weapon to ensure a further term in office
at a time of his choosing.]
Altered-Bolding & Underlining Used-Comments in