The cry “something must be done” rang out after yesterday’s news of the horrible 0.7 per cent contraction of the UK economy in the second quarter. Real gross domestic product is now lower than the level the coalition government inherited in 2010.
For George Osborne, Britain’s chancellor, that something was for the government to continue its “relentless focus on the economy” and “dealing with our debts at home and the debt crisis abroad”. For Ed Balls, his opposite number, it is time for “a change of direction and an alternative plan for jobs and growth” involving tax increases on banks and tax cuts on households.
I am sure both are right to stress the importance of sensible government policy. But the correct “something” is entirely dependent on the true underlying health of the economy. And that is something that is becoming more mysterious by the day.