I have to admit I’m a little confused I’m sure that everyone agreed that after the Credit Crunch the UK economy was in a horrid state and it was unsustainable for us to carry on as we were. That we would have to find a way to fix the economy, balance the books and make sure that we didn’t break our country and force it into bankruptcy.
And I’m fairly sure I listened to politicians of all parties saying that spending cuts would have to be made and taxes increased to pay for the over consumption of the previous years. I’m fairly sure that going into the general election both parties admitted that some sort of cuts would have to be made but they just differed on when, how and where. Not on the idea of cuts.
Except now I’m reading the papers and watching the news and seeing people demonstrating against the mere fact that there are spending cuts.
And not campaigning that we should perhaps be more focused on where the cuts are made to ensure that the parts of society that need state support most receive it but instead marching to say that all cuts are bad and that they shouldn’t be happening at all.
The papers are filled with rage from members of the public demanding that the cuts go away and that one or other political party please promise that they won’t back any cut back in consumption.
I read article after article saying that the banks and bankers should be taxed more and yet article after article and comment after comment seem to miss the point.
Person after person seems to be the economic equivalent of a flat-earther. The bottom line is that just taxing the highest earners more won’t create all that much in tax revenue terms because there are fewer of them proportionally and if you tax them too hard they just leave the country and take their taxes elsewhere. And the same goes for businesses. Tax them to a point where the UK is no longer a competitive place to stay and they’ll take their ball away.
And we can’t just not cut back.
The country has been spending too much and for each extra pound that we spend over above the income coming in we end up borrowing money. And at the moment the interest we are paying on the debt we have accumulated is more than the public transportation annual budget. Surely its madness to effectively waste all those billions on servicing a debt we shouldn’t have built up anyway.
What happened to Mr Micawber and the idea of living within your means.
Yes there should be debate about where the cuts should be and how to protect those that need protecting but the bottom line is that unless we do something, unless we fix this, we have a big problem and one that is effectively causing us to waste money on interest payments. Fix the level of debt and we will free up money to be spent where its needed.
Nobody is saying that austerity is forever but they are saying that if we leave things as they are we will be looking at economic peril and a longer period of tough times.
Or alternatively I’ve got it all very wrong and in fact the earth is flat.