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How Did It Go So Wrong For The UK Economy?

The Alistair Darling interview with the Guardian newspaper has 'let the cat out of the bag' in the words of Shadow Chancellor George Osborne. After months of refuting suggestions that the economy was on its knees and sinking it seems that the government - or at least Alistair Darling - has come around to this way of thinking. The signs are there, the pressure is building and this sheds a whole new light on the UK economy. If the government has no idea what is going to happen, and more worryingly how to fix the problem, what chance do the rest of us have?

This seems to be a government which is unravelling quicker than the UK economy and one which is set to hit rock bottom over the next 12 months. The UK has gone from being one of the strongest economies in Europe to one of the weakest and the signs for the immediate future are not good.

The public purse is in disarray, we are seeing new strikes every week and pay awards are matching inflation and beyond. This means that the fight against inflation will be harder as there will be more disposable income to push prices higher and higher. Quite bluntly the economy is in a mess!

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