Gamble still on
We had all hoped for reality and truth, however painful, from Monday's statement. But the truth about the national situation is that all the crises of which the Government are victims — the petulant politics of the Middle East, the aggrieved politics of the power worker, the indulgent politics of train drivers, and the wounded politics of mine workers — come on top of a domestic inflationary policy over which the Government has presided. That presidency has been deliberate: Mr Heath and his ministers have deliberately decided to spend more than they earn in the hope of achieving a future elysium of growth. The gamble is still on. The fear must be that, if the various dissident unionists in the country call off their various disruptive actions, those ministers mentioned earlier will feel no obligation to make the cuts in public expenditure which would really reduce inflation, even at the cost of deflation. That, in spite of all temptations, the Government would proceed to trim its own expenditure, appeared to be the view of Mr Enoch Powell, Mr Barber's sternest critic in these matters, when he welcomed the Chancellor's statement. Mr Barber gave some evidence of good faith when he expressed his gratitude for Mr Powell's support. It was all certainly a change from the insults of recent weeks. But we must wait and see whether the Government really means to tackle its own inflation as well as that created by other people.
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