The George Osborne paradox: for save, read spend

The striking think about this chancellor is that he says one thing then does the opposite

Cynical, but both economically and politically effective in the short term, was the verdict of two clever Keynesian critics of George Osborne's budget I heard speak at a round-table discussion last night. The striking thing about this chancellor, they noted, is that he says one thing and actually does the opposite. It's the Osborne Paradox.

And a good thing too, they emphasised, wearing their Keynesian hats. Why? Because the strong but fragile economic recovery needs more demand. Osborne struggles not to provide it via government spending or borrowing the best way but ideologically repugnant to him. So he is inviting voters to do the job for him by borrowing more and spending more of their savings. Why, the chancellor even hopes to tax the process!