Even if the GDP numbers are not entirely unexpected, they are still a failure, a failure to grow the economy. The deficit can only be paid down if the economy grows, we can’t borrow our way out of a debt crisis. It is time for a supply-side revolution, why is the government implementing a policy of selected regional enterprise zones, why not make the whole economy an enterprise zone? It was a mistake to hike VAT and it is a strategic error to burden industry with crushingly high green taxes, penal marginal income tax rates of over 50% discourage entrepreneurs and investors from coming to Britain.
If the government is going to miss the deficit target, and it is, miss it because the government slashed taxes to grow the economy. The international bond markets will forgive a finance minister with a growing economy who misses his deficit target, they won’t forgive a finance minister with a contracting economy in any circumstances. Chancellor Zero knows that with no growth there is no hope for the deficit.
Whether Guido is right that there is any hope for the deficit, under any circumstances, is a proposition I leave to others to ponder. I quote the above posting because it illustrates something important about Guido himself.
In among all the knockabout gossip about who is sleeping with whom and who is cheating on their expenses, Guido regularly slips in more thoughtful stuff. He regularly, that is to say, drops in explicit libertarian messages, in among all the merely implicit libertarianism about how they are all conspiring with each other to rob us blind. This is why they all hate him so much. He is absolutely not one of them. They want to believe that he is only a gossip monger, and a mere partisan Tory, with no principles other than that he wants his particular team to be in charge of all the robbing and conspiring. But those of his pro-state (I often think more fun than is might be had with that hyphen) enemies and victims with any antenna or honesty know that he is something far more dangerous to them than that. He is a principled libertarian with readership numbers and influence most of them can only dream of. He, more than anyone else in Britain, is responsible for the widespread perception in British politics that the arrival of the internet was a breakthrough for libertarian ideas. Before Guido, we were talking amongst ourselves, which was good. Now Guido regularly shoves it in front of them, which is even better.
Okay, a simplification. Others were doing this before Guido. But none so entertainingly, or to such a wide readership. One of Samizdata’s prouder boasts, I think, is that before Guido found his own blog persona and his own voice as a blogger, he was briefly part of ours.
Here is a photo I took of the great man, at a recent gathering at Samizdata HQ:
By the way, do you remember the posting I did here a while back about how so much of what happens in the world is down to two-man teams? Well, these days, anyone who cares knows that there are now two Guidos. I asked original Guido about this at the party where I took the above snap, and the partnership between him and Harry Cole is definitely the real two-man team deal.