Tuesday, 30 March 2010

NuLabour INVESTMENT? vs Tory CUTS?

NuLabour Investment

How can this be done? It cannot, without more borrowing or without cuts!

Already 52% is spent on the public sector. That only leaves 48% for the private or unemployed (say 8%).

So the remaining productive 40% cannot possibly earn enough to pay for 60% of the other people. And it is no good investing yet more in public services or social protection.

There is only a certain amount of money to go around, unless you print more. Most of the money today is in other people's hands because everyone is in deep debt (mortgage debt is £1300bn), deep personal debt (credit debt is £340bn) and so is the whole country in debt (the government debt is £850bn). Which is a debt of £36000 for every man, woman and child in the UK!

Some money needs to be released to enable private investment to flourish. This can only be done by cutting hard at the public sector to release credit for the private, and for us all to start paying back our personal debts. At the same time saving some money to balance our payments (UK income 2009 was £498bn, and spending £675bn, we borrowed the extra £178bn, and pay £30bn interest on this debt).

Tory Cuts

So where to cut? This is the nub of the issue. There are two parts to it.

First, what everyone is protecting called "front-line services", which is interpreted as Health (£119bn) and Education (£88bn) the costs of which are just about covered by VAT & Social Security taxes. In reality these ARE being cut, money for universities has been cut, the NHS has an "efficiency drive" because they have been asked to cut £4B at least... and the rest of government has a £11bn target efficiency saving. (It is a political target, it won't happen)

Second, the real cuts must come from Social Protection, which has got entirely out of hand (£219bn). OK, I know, if we don't support the elderly, the poor, etc, etc, then we are not good citizens. But excuse me, the problem is that these are the very people that are not being supported today. What is being done is to create mountains of bureaucracy around political objectives claiming to solve problems.

We need to cut the public purse and give the money back to everyone, i.e. cut taxes, increase pensions, would have a better effect. But mainly cut the "no jobs", the wild IT Projects and the Quangos, Trident... that contribute nothing. We need to cut the total spend by up to £50bn/year.

Then give people more responsibility for their lives, not molly coddling them into dependance, as a result they will have more autonomy and more hope.

Brown is in his bunker, listening to sycophants. Chuck him out.

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