leanderman
Street Party: July 2
So, nothing to do with the worldwide "credit crunch", then, and the knock-on effects from that?
Labour might have run up the structural deficit, but most economic predictions prior to the "credit crunch" saw the deficit as easily repayable further into the economic cycle, and the running up of the debt in the first place as "safe". Notice, for example, how none of the ratings agencies were marking down UK debt between 2004-2008, the years when the structural deficit increased.
Labour aren't blameless. Their unwillingness to re-regulate parts of the financial sector that had been deregulated by the Tories directly contributed to the financial products that caused the "credit crunch", but that's regulatory as opposed to economic incompetence, and anyone who understood or understands the economic agenda Labour signed up to (neoliberalism, the same agenda the Tories were already signed up to) in order to get business support in the run-up to '97, knew that hitting The City was vanishingly unlikely except in the form of the one-off "Windfall Tax".
Generally agreed. Although citing the ratings agencies is a bit much!