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" Budget Will Mark The End Of Brown Illusion"

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Budget will mark the end of Brown illusion
By Roger Bootle
Last Updated: 6:44am GMT 10/03/2008
What a change this Budget will represent. No more boasting about the UK's outperformance; no more miracles combining increased spending, lower borrowing and cuts in taxes; no more glad confident mornings. Instead, this Budget will see a reluctant admission that, at the very least, the sky looks darker. And how!
Doubtless the Chancellor will not be all gloom and doom. Alistair Darling will do his best to put a positive spin on events and prospects and do what he can to bolster his reputation. But his is not the reputation primarily at stake. Wednesday's Budget will surely mark the end of the
Brown illusion
The essential error of the Brown years was that, just as happened under Chancellor Lawson, he and his inner coterie came to believe their own publicity: the end of boom and bust; the strength of the housing market being sustainable; the balance of payments deficit not mattering; huge increases in government spending being easily financeable because of the tax revenues generated by a strong economy.

The Brown miracle has officially come to an end and we are about to pay the price for 10 years of credit fuelled house prices and "service" based production. The spin will begin and the blame will be based on the global credit crisis which is the direct result of the Brownesque policies having been implemented in all the bubble economies which are now paying the price for their own folly.

So what is the lesson for Brown to learn from his folly? Its simple and was coined by the late great Milton Friedman: There ain't no free lunch.

Let all the poisons that have been lurking in the mud hatch out!

Edited by Realistbear

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  • 294 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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