The latest report on the global economy confirms the fears of many – growth is slowing. The IMF has issued its most recent predictions for economic growth and has downgraded its estimates. This is particularly the case for Europe but the prediction for the UK for 2012 is that the economy will shrink by 0.4%. This is downgraded from their prediction in July that the UK economy would grow by 0.2%.
So what will George Osborne do in response? Will we see a reversal of the cuts programme? Will we see a major programme of investment in useful infrastructure projects to create jobs and build for the future? Or will we see more of the same from his autumn statement when he makes it in December? Clearly, his assurances that the private sector would step in and fill the gap in employment and economic growth left by public expenditure cuts have not been delivered. But in truth we can probably expect more of the same – because the reality is that austerity is not solely about paying off public debt. It is largely about shifting power and resources away from the majority and to big business. So the debt must be re-paid. But it must be re-paid in a way which shapes the economy and public services for the future. That future would mean less security and fewer rights for working people.
So we can’t in any way rely on Osborne and Co to realise what a mess they are making of the economy and change direction. For them, the price is worth it if they are able to re-structure the economy to suit those at the top.
That’s why we need an alternative built on our unions and communities building alliances with pensioners and young people. Get on one of the marches on October 20th.