In the battle for hearts and minds over the deficit and cuts, Labour have employed Ireland as evidence to support their anti-cuts position. Their argument is that spending must continue and that borrowing should be maintained to cover the gap between revenue and outgoings. The events in Ireland yesterday show what happens when that argument holds sway.
Another bank bailout in Ireland took place because the banks borrowed more than they were capable of paying back. And that is the story of the Irish economy. The Irish Tiger turned out to be a useless fat cat supported by credit that ran out. There was no economic miracle, just a great deal of debt. Every time money is borrowed, it has to be paid back at some point.
Labour argues that spending should be maintained by borrowing. Look across the Irish Sea to see the end result of such a policy. Bankruptcy, unemployment, business closures and recession are the price ro pay when the debts come home to roost. That's the future offered by Labour.
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