This morning Ed Balls delivered a powerful critique of the Government's economic strategy. Or, from his perspective, absence of a strategy.

Their measures to deal with the shortage of affordable housing were "small beer". Our ailing economy needs a keg load of the stuff. Minister's are robbing Peter to pay Paul. Or rather, they're shoving Peter on to the dole queue to pay down Paul's debt. And what's worse, the level of that debt is actually rising because there are now so many Peters drawing the dole or on the social. "Please Mr Osborne", he implored, "do it for the kids. Change course now before it's too late."

OK, I'm slightly paraphrasing the last bit. But it was a passionate argument. And a compelling one.

The only problem is that Ed Balls isn't arguing with the Coalition. He's picking a fight with the British electorate. And it's the same fight he picked, and lost, at the 2010 general election.

In the 18 months since Gordon Brown walked out of Downing Street, we have been on an economic and political switchback ride. But the terms of debate over the nature and course of our journey remain essentially unchanged. Is the solution to the current economic crisis a period of stimulus or a period of austerity?

Ed Balls believes in the former. It is a view he has held consistently since the delivered his Bloomberg lecture in August last year. "I'm very fearful", he said, "that big public spending cuts now will actually mean it [growth] goes into reverse. When that happens it's bad for market confidence, it's bad for repaying the deficit and it will make the fiscal challenge harder in the long term". Prophetic words.

Yes, the Eurozone crisis has muddied the waters. Even if Ball's prediction of a double dip recession, made at a time when the economy was growing at a faster rate than the analysts predictions, proves accurate, George Osborne will blame the imprudent Greeks, impetuous Italians and intransigent Germans for scuppering the recovery.

It will be a hard sell. "It's nothing to do with me, guv'", isn't a narrative that plays well with the public.

But nor is one that says: "I told you so". And that lies at the heart of Labour's problem. Their entire political strategy is predicated on convincing the British people that at the last election Labour was right, and they, the British people were wrong. Ed Ball's isn't trying to win the next election. He's trying to win the last one.

Forget the talk of a five-point plan. What Labour is currently campaigning on is effectively the Darling plan. Actually, it's Darling plus, with even greater emphasis on increased capital expenditure, rather than deficit eradication over the life-time of the parliament.

Now that may be a very good plan. A positively brilliant plan. In years to come Darling economic scholarships may come to represent the intellectual and academic gold standard.

But it doesn't matter. Because the British people have already been offered the Darling plan. Or in their eyes, Labour's plan. And their response was, "thanks, but no thanks".

Gordon Brown launched his 2010 election campaign declaring, "In the dawn of this new decade, Britain faces the biggest choice for a generation". Britain took it. And the choice was David Cameron, Nick Clegg and austerity, not stimulus.

For some reason Labour cannot , or will not, acknowledge that fact. There are no instant replays in politics. But Labour's tactic is to appeal, appeal and appeal again in the belief that sooner or later the electorate's decision will be overturned. "Too far, too fast!" "Hmmm, no, pitching just in-line". "Too far, too fast!!". "No, I'm afraid you're out". "Can't you see! It was too far and too fast!!!"

The Government is in a vulnerable position. David Cameron's rash claim the British economy was "out of the danger zone" is returning to haunt him. The politics and economics are starting to move out of alignment. The Tory back benches are becoming fractious.

But Labour isn't capitalising. And it can't. Because, however compelling the case, it is trying to win an argument that has already been lost.

The country does not believe it is possible to spend our way out of recession. They agree with Liam Byrne's assessment that there's no money left. Despite the rigour of Ed Ball's argument, at the time of the election a deficit reduction/deficit denial wall was erected. And Labour remains trapped the wrong side of it.

Which doesn't mean the public have faith in the Coalition's strategy. They clearly think serious mistakes are being made. But they just aren't interested in hearing that from Labour. And they will continue to shut their ears until Ed Balls and Ed Miliband find a way to demonstrate they have listened to the verdict delivered by the British people in 2010.

The electorate is always right. And even when it isn't, it still has the last laugh.