Friday’s Throne Speech exposed the Progressive Labour Party’s fundamental problem going into the general election campaign.It has no choice but to acknowledge that the economy is in dire straits, stating: “Profoundly affected by the global economic downturn, Bermuda’s people have been tested, their lives altered, in ways like never before.”But it must maintain the illusion that it has done everything possible to help Bermuda through these difficult times: “The Government’s policy responses kept the people on their toes when a change of course was needed. As a result — although at times it may have been hard to feel — Bermuda has fought a good economic fight, as good as any in the Western Hemisphere.”Hard to feel? Absolutely. Bermuda’s economy has been in recession from 2009 to 2011 and all indications are that it will continue to contract this year.It’s hard to find a country that can claim that record. Certainly not Western Hemisphere leaders Canada or the US, the Island’s main trading partners, which emerged from recession in 2010, albeit not very strongly in the case of the US. And most of Bermuda’s main Caribbean competitors also seem to be recovering now, including the Cayman Islands and the Turks and Caicos Islands, despite the latter’s political problems.So in fact Bermuda has not fought a good economic fight; it has fought a poor one. It failed to prepare for the looming recession and when the recession struck, it denied its severity and has consistently failed to put in measures to combat it.Indeed, some austerity in 2010 would have avoided the much more severe measures that will eventually be needed. Some liberalisation on work permits and terms limits then would have kept more businesses here. Instead the Government raised payroll tax and shocked international companies by raising the salary cap for payroll tax without warning, a decision which was seen as a breach of trust.Even now, the measures proposed in the Throne Speech are too little, too late. The expansion of the Economic Empowerment Zones suggests that there are local business in Bermuda that are advantaged and doing well, when the entire domestic economy is in grave difficulties and not a day goes by without layoffs. Business as a whole needs a break, not just Middletown and North Village.On fiscal policy, it is surprising to learn that the PLP plans to restore the “long-standing policy” of borrowing only for long term capital projects. It is surprising because PLP campaigning has insisted that the $1.4 billion deficit has been “investment”. Now the Speech contains a tacit admission that that is not the case.Aside from that, there is not much in the Speech that will tangibly restore the economy in the short term. A new Tourism Development Act allowing a wider range of developments is welcome, at least in principle. But it must be clear to all by now that little in the way of hotel developments is going to take place in the near future, developer Carl Bazarian’s claims notwithstanding.There is nothing wrong with pursuing investment from the Middle East or with encouraging Islamic finance in Bermuda. But Gulf investors want to see a return on their investment just as North American or European investors do, and there is nothing in the Throne Speech about making Bermuda more competitive.In recent times, Government has talked about mining manganese nodules and other metals from the deep seabed, using drones to monitor offshore fisheries and taxing aircraft that pass through Bermuda’s airspace. None of these ideas were mentioned in this Throne Speech. Instead, there is talk about Bermuda becoming a leader in the “blue economy”, which apparently is similar to the “green economy” but is water-based.There is nothing wrong with these ideas, or with “out of the box” thinking. But there’s a big distance between an idea and reality. And too many of these ideas pop up in Throne Speeches and Budget Statements and are never seen again.There is more to the Throne Speech than this. But the Speech rightly states that the economy and jobs are at the forefront of the public’s concerns. So why is there so little in it that will restore economic confidence or bring about growth?