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Showing posts with label Bank of England. Show all posts
Showing posts with label Bank of England. Show all posts

Wednesday, 16 November 2011

Another lost generation?

The Minister for Employment speaks on a journey of no hope

Continually blaming the previous Government for the crisis the bankers left us in is wearing a bit thin so now it is the fault of the eurozone. Commenting on the unemployment figures, Chris Grayling the Employment Minister said, "These figures show just how much our economy is being affected by the crisis in the eurozone. Our European partners must take urgent action to stabilise the position."


His BBC2 'Newsnight' performance in front of a group of unemployed youngsters last night offered no encouragement. With the prospect of youth employment exceeding one million (realised in this morning's figures) an increase in apprenticeships was one crumb offered despite the scheme being discredited in a news story on Sunday. 


The most significant effect of cutting public sector employment so far has been to reduce the tax intake while increasing the amount needed for benefits plus letting into the country an unknown number of undesirables because of a shortage of immigration control staff to deal with lengthy queues. Gone is the rosy picture of the private sector mopping up people made redundant although for many that was always a puzzle when unemployment was already high.


With the Bank of England reducing growth forecasts the outlook for the young unemployed is dire and especially so for graduates who have left university with massive debts to repay - provided they ever earn enough to repay their loans. Without growth the outlook is grim with the prospect of another lost generation. It is no good simply waiting for others to provide a stimulus. An impotent Government serves none of us.

Tuesday, 15 February 2011

Windbag or saviour?


Mr Cameron's Big Society is under the spotlight again (Photo: Getty)

Back in the news is the Big Society. As a former communications man one would have thought that the Prime Minister would be able to put over his big idea with the utmost clarity but people still struggle with it. Could it be that it is all wind and no substance? I thought Cameron's interview with the BBC's political editor revealing in the sense that Nick Robinson asked tougher questions than usual suggesting that even he, a former President of the Oxford University Conservative Association, had doubts. The government were simply  washing their hands of responsibility by letting local councils take the flack after starving them of the funds needed to make the project work. 

People at the local level are being played off against each other as the Prime Minister claims that in a "grown up society" people have to make tough decisions but empowerment is not that simple. Ministers keep reminding us that it is going to be a tough year. The elderly have been hit particularly hard by inflation, shrinking pensions and erosion of savings but how much worse for the young unemployed with little or no prospect of work, fuelling fears of a lost generation. The current inflation rate of 4% is double that of the Bank of England's target rate of 2% making life even more difficult for many while the few carry on regardless. Barclay's today announced profits of £6.1 billion increasing pay packages by 20% despite reduced bonuses.

In his interview with Nick Robinson, the prime Minister let slip that it was not the previous government who dropped us in the mess but bankers. With an army of unemployed left roaming boarded-up streets in the Big (divided) Society there could there be big trouble ahead.  Oak trees from acorns grow.


Postscript


Thanks to Charon QC (see Blog list) I've just picked up this video of Francis Maudethe Minister responsible for pushing the Big Society, explaining his contribution. Brilliant! One comment suggested the the clip had been doctored so you can see a fuller version here. Well at least he goes to church.