The Toff/Traitor coalition are attempting to put it that way. In fact it was the Toffs chums, the greedy bankers, who caused this whole problem, not Labour, they saved us. Now we are paying the greed balls huge bonuses
Labour's part in this was to fail to regulate the banks - something the tories would also have done. The tories' argument is that Labour spent too much and therefore caused the crisis. This wasn't what caused the crisis; that was the banks. I suppose if the tories had been in power, they would have spent less on public services, but also used the money to fund tax cuts for the rich, so we'd be poor anyway. It's actually impossible to say. All you can say is that the economy was growing by 2% in the last days of Labour and is now at 0.4% and heading for a double dip recession so they'd better stop blaming Labour and start sorting out their own mess.Was the current financial crisis really Labours fault?
There are two parts to the financial crisis - Debt %26amp; Deficit - and they are different.
The debt is money that we owe to other counties, banks, and the like where we have borrowed. Money that we propped up the banks with contributed to this, but not exclusively. The banking crisis was due to profligate lending (by US banks too) and little regulation. Gordon Brown removed the Bank of England's regulatory role in 1997 and failed to replace it adequately.
The deficit is the money we spend as a nation on a monthly basis and which is not covered by taxation. In other words, we spend more than we earn. That is the fault of Labour, exclusively, since they were throwing money at everything without proper scrutiny of the expected benefit expected in return. In summary, yes the UK financial crisis was preventable to a large degree by the Labour government.
Primarily an issue in international banking
That Labour didn't regulate and control the British banking system is true.
That the Tories probably wouldn't have either is also true.
For me, Labours main fault was their inability to see the crash/recession coming and to then cut their cloth accordingly.
However, for the ConDems to suggest this problem is solely down to Labour and not a failure of international capitalism is a big fat lie.Was the current financial crisis really Labours fault?
No, the ongoing financial crisis/ recession, was caused by the collapse of the sub-prime mortgage market in the US. Too many people could not pay their mortgages. Banks and investment companies that invested in these lost money. Badly managed and badly regulated banks needed to be bailed out by taxpayers. Do you think the Conservatives would have had the guts to let the banks go bankrupt like other businesses? Labour did not.
Recessions are cyclical, you have 5 or 6 years of growth then a couple of years of correction. No UK Government can prevent it, but they can have systems and revenue in place to ease us through it. The reason why this recession is so severe is because Governments tried to keep the growth years going by allowing banks to lend people money on assets that were already overvalued. We should have had a small recession around 2002 but Governments encouraged people to borrow so we had growth built from personal debt, it was always going to end in tears.
Who is to blame? The Banks acted recklessly, the Governments allowed them to do so. We also had individuals that were spending money they didn't have, and were never going to be in a position to pay it back. Where Labour let us down badly is in their Budget Deficit, from the end of 2002 Brown couldn't balance the books and was borrowing money. This should have never been allowed, we now have the biggest budget deficit of the G20. There is no hiding the fact that as they were the Party in power for 13 years this has to be their fault.
http://www.bbc.co.uk/news/10430527
While the National Debt isn't such a huge worry, and can be blamed mainly on the Banks, some of this is also Labours legacy.
Edit,
There really are some misinformed people. The Budget Deficit and the National Debt are 2 separate things. The Left Wing deniers really are adding ignorance to this as well.
Much of it is.They were buying votes to hang on to power,Trouble is they were buying
them from Nu British who are only interested in their own agenda.
Britain has been sold out by Labour.Look at the mess schools and hospitals are in.
Too many spongers from overseas draining Britain dry.
In the UK? Yes it was for reasons far too numerous to mention here. Just one example: Who was it that decided it would be a jolly good wheeze to sell off most of the UK gold reserves when the price of gold was at its lowest for decades? Yep, good ole Iron Chancellor himself - Gordy Broon. And my, how he was applauded by hsi corrupt chums in the Nu Liebore party. Need I go on?
I realise that this answer may seem to be " off-topic " but if you have the time take a look at this:http://uk.wrs.yahoo.com/_ylt=A1f4cffQnMV鈥?/a>
No. The current financial situation can be blamed 100% on the banks who have cost the British taxpayer 850 BILLION POUNDS......so far.
If it were the fault of the Labour Govt. how come the rest of the world is in a financial mess too?
I don't see how the British Labour Party can be responsible for the behaviour of foreign banks. That anyone anywhere should believe that is staggering, but there it is.
The labour government bailed out the banks left to the tories they would have let them go bust.So in a way yes .
They played a part in it, they did not regulate the banks
It is the fault of both the banks and the Labour Government.The banks for giving out excess credit, 100% mortgages and the government who knew that it could not go on.The out of control benefits system and Labour creating public sector jobs that could not be sustained also contributed. Labour are responsible they were in power for 13 years no one else!
Well they were in power for the 13 years when this was happening so who else is there to blame ? What did they do to reverse the huge debt ? Nothing. This is what it looks like and rising by the second.
partly labours fault,mainly the banks,industry is nearly dead,thank God so many immigrants arrived to help us,wages are much more reasonable now
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