An alternative economic policy
Sir: Having waited in eager suspense for the second instalment of Mr Lawson's cliffhanger on an alternative economic policy for the Tories, I must confess to a certain disappointment on its arrival. I agree with him that as a party we should go all out for economic growth but that does not get one very much forwarder. The question remains as to how we are going to do it. The only answer Mr Lawson has is to bring out his old hobbyhorse of devaluation which he has been cantering round the pages of the SPECTATOR for what seems to be years. The horse has been rechristened 'floating pound' in the place of 'devalued pound' but in practice there would be very little difference and the political objections to advocating either course are overwhelming. Even Mr Lawson admits that it would not be 'prudent' to advocate devaluation. That can lay claim to be one of the leading under- statements of recent times. In whichever form the Tory party put forward Mr Lawson's remedy, one does not have to be a genius or a prophet to antici- Pate the Wilsonian onslaught on the threat the Tories would offer to the savings of widows, orphans et al. Mr Lawson writes as an economist:
but the Tory party must think not oniy in economic but political terms.
One of the principal functions of an opposition is a lowly one: to listen, and find those aspirations and desires of the electorate that are not being expressed by the government of the day. Anyone listening with only one ear at the moment must be aware of the great groundswell of resentment against high taxation. The Tories do not have to bother with high-falutin theories about 'floating' or 'fixed' pounds when they have the opportunity to make a very simple and definite ie.mtification between the party and reduced taxation. If this means rigorous control of public expenditure so much the better. The mood of the public in 1964 was for greater social expenditure, the mood when the next election comes is likely to be 'for greater choice in private spending and opportunity for saving. The Tory party should make its com- mitment about these matters now.
Norman St John-Steras House of Commons, London SWI
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