Wednesday, March 20, 2013
Another Fine Mess, Still!
It seems to me that basic economics on a national scale should follow, roughly, the principles of our personal economics, meaning that by and large you live within your means. OK you take out the occasional loan for a new car, a holiday or whatever but to build up debt way beyond your income is seen, quite rightly, as irresponsible. So why should government behave any differently?
Many individuals are in a position, if they have borrowed a little too much, to work some overtime or maybe get a second job to bring in some extra money. What can government do? It is unproductive, it doesn't earn money, all it can do is tax or borrow. Anybody thinking the current government is acting responsibly should think again, maybe take a look at this report from the Taxpayers' Alliance. It details how this government has raised taxes in over 200 instances.
That doesn't strike me as being very conservative. A personal economics analogy might be the family who run up an unsustainable debt being able to look at the family next door, who have been prudent and saved, and take a few grand out of their savings account. That doesn't seem very fair to me. To put it on a national scale look at the proposed theft from savers in Cyprus by the European Union. I don't see government trying to tax its way out of debt being any different. But many people seem to accept this, failing to understand that government doesn't have a big money tree that it can pluck the odd million quid off, it has to take it from us, or borrow it.
What it seems to me is that we need a conservative government with guts. Osborne today could take some brave measures. He could cut VAT, cut income tax for the lower paid. Give the long term unemployed a tax holiday if they find work. Reduce fuel duty and the hated alcohol duty, and that's just a few ideas.
Yes people have become welfare dependent. But that is because government has created the conditions where it is possible for people to not bother working. People attack migrants, especially from Eastern Europe, but they are coming here and finding work, and living quite comfortably, in jobs that it seems too many people refuse to take. Otherwise why are there so many British people on benefits while migrants are gainfully employed? Blame the state, not the immigrants.
Fair enough, they would have to balance the books. Well start with looking at the huge waste in bureaucracy, the huge amount of money we send each day to the EU. The huge amount of money it costs us each day enforcing EU rules and regulations. The huge amount of money wasted in education on pointless and trivial degree courses, then look at the quality of some of the so-called graduates. Let's look at the huge amount we send abroad in aid. Stop it, it seems to be either going to countries such as India and China who don't need it, or to countries where it is being squandered by corrupt governments.
But I'm not holding my breath. Let's face it the Tories are led by Cameron, a liberal democrat in reality. He couldn't even beat Gordon Brown in 2010 so what chance has he got in 2015 of winning? Even if he did what was needed today it probably wouldn't be enough. And, when putting Cameron in a list of good Conservative leaders/ PMs remember, even John Major managed to win, against all the odds, in 1992. Cameron was a washed up nothing before 2010 and he just convinces us all the more with every day that passes.