Ealing Southall MP Virendra Sharma is a ridiculous man. He is totally ignorant of economics and thinks that if he spews out Labour party soundbites people will believe him. Maybe he is right. Maybe if he lies big enough, often enough he will manage to deceive people. His latest piece in the Gazette contains so much nonsense I thought that it was worth pulling out Ten Sharma Lies.
Today I am looking at Sharma Lie Number 1. He says in his Gazette piece of David Cameron “He has led us into a double-dip recession”. Sharma is a fantasist. Our economy was comprehensively undermined by the Blair/Brown government which took us into terrible economic times with a structural deficit of over 5%. In other words even before the banking crisis hit, our state spent £73 billion more than it took in tax receipts and this amount wasn’t the passing effect of hard times it was an underlying structural overspend. That is more than £1,000 per head of population per year. More than £2,000 per head per taxpayer per year.
As a result when the crisis hit in 2008 and our economy lost 7% of GDP from Q2 2008 to Q1 2009 there was little room for manoeuvre. This was the first dip. It happened under a 13 year Labour government and was entirely the fault of the Labour government. The second dip happened Q4 2011 to Q1 2012 and cost us about 0.5% of GDP. It was less than ten times as severe as Labour’s dip and will be seen historically as an aftershock, nothing more.
So a more accurate quote from Sharma would be: “David Cameron was in power when the UK suffered a minor aftershock from Gordon Brown’s 7% bust”.