LETTER: Prognosis was so uninspiring

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No-one can be inspired by Mervyn King’s latest prognosis for the UK economy – “This is the worst recession in history” (BBC Newsnight, October 6), or David Cameron telling us all to pay off our credit cards and store cards.

What I find galling in an area of low wages and high taxation is most hard-working families had no option but to use these tools and were encouraged to do so.

The influx of foreign labour depressed local wages while local authorities increased taxes.

For instance, here in Pinchbeck, the parish council doubled our taxes in four years. Let’s ask them now; how exactly did that help the local economy?

Meanwhile small businesses struggle and Spalding shops are closing because consumers are forced to cut their spending and are urged to pay off debt.

Chancellor Osbourne, who routinely borrowed £10billion a month, now finds the effect of the spending downturn and high unemployment on tax revenues, means he now borrows £16bn a month, despite the cuts.

The Bank of England’s latest measure is a freshly-printed £75bn of quantatative easing which it is hoped will find its way through the banking system to aid small business start-ups.

But how will new business prosper if consumers continue to struggle with low wages, high taxes, unemployment fears and high debt?

The only people protected from the worse effects of recession are the richest because right now an awful lot of them are in government.

Others winners will be the bankers because no one in this country has had the common sense or the balls to make them surrender their massive bonuses.

Likewise politicians, who can put their family members on the public payroll.

As for the rest of us, I think Keynsian economic policies adopted globally (like Roosevelt’s New Deal in the 1930s) will ensure people everywhere have a better chance of employment and feeding their families.

The alternative may well be long-term stagnation and misery. One should never forget with what little wisdom the world is governed!

david turp

Wimberley Way

Pinchbeck