Ed Balls has been in the news today talking about the depth of the recession and what needs to be done to counter it. On Saturday he highlighted the stark difference between Gordon Brown and Alistair Darling’s action to stimulate the economy and provide real help now, and the Tory ‘do nothing’ approach which would leave families and businesses to sink or swim on their own. The Tories are completely isolated in their opposition to a fiscal stimulus that is essential to combating what most economists agree is an unprecedented financial sector recession. Ed rightly said that this difference between the parties will define this country’s politics for many years to come.
As the Prime Minister, Chancellor and Chief Secretary have said time and time again in recent months, the scale and global integration of our national economies is so advanced that what started in the American housing market has spread round the world with unprecedented speed and ferocity. The unprecedented global nature of this crisis and its impact on the global financial sector is affecting every single economy in the world. The Bank of England agrees with this analysis. As the Deputy Governor of the Bank of England, Charlie Bean, said in October: “This is a once in a lifetime crisis, and possibly the largest financial crisis of its kind in human history.”
You can read the full text of Ed’s speech here.
UPDATE: Here’s the transcript of an interview Ed gave earlier on this subject.