Thursday, September 14, 2006
Up the junction
The Daily Express reports here on our economic situation. The outlook doesn't look too good as according to the IMF there is: ""critical need" for "restraint of public spending" because Britain's budget deficit has ballooned to a larger proportion of national wealth than in the United States."
Anyway, some people have been saying for sometime that state spending was unsustainable and I personally think it'll all end in tears.
According to the report: "The Financial Times reports Gordon Brown has pencilled in public expenditure growth of 1.9% above inflation in his March budget, a figure below the expected rate of economic growth, meaning it would lead to a fall in public expenditure as a share of national income. " Of course Gordon pencilling in something, and the figure actually happening could well be two different things. As the article points out there is usually an increase in state spending in the region of 7% especially in health and education.
Strangely the "reporter" doesn't link this story in with the one on the front page of the Express (not apparently online); the headline reads: "Exposed: Plans To Increase Your Tax". Such a plan would of course put even more money into Gordon's treasury.
Whilst of course I take a dim view of tax increases, it is also my view that Gordon is pretty much running on the limit at present, and if taxes do increase (even hidden taxes) then it won't be worthwhile working for many more people. Any more tax increases will show Grabber Gordon in his true light, a great black hole into which is sucked the wealth of the nation, never to be seen again. In any event more tax increases will mean less workers and less tax receipts, less workers will increase the burden on state provision, necessitating in turn more tax increases. It will turn into a vicious circle and we'll truly be up the junction.
Anyway, some people have been saying for sometime that state spending was unsustainable and I personally think it'll all end in tears.
According to the report: "The Financial Times reports Gordon Brown has pencilled in public expenditure growth of 1.9% above inflation in his March budget, a figure below the expected rate of economic growth, meaning it would lead to a fall in public expenditure as a share of national income. " Of course Gordon pencilling in something, and the figure actually happening could well be two different things. As the article points out there is usually an increase in state spending in the region of 7% especially in health and education.
Strangely the "reporter" doesn't link this story in with the one on the front page of the Express (not apparently online); the headline reads: "Exposed: Plans To Increase Your Tax". Such a plan would of course put even more money into Gordon's treasury.
Whilst of course I take a dim view of tax increases, it is also my view that Gordon is pretty much running on the limit at present, and if taxes do increase (even hidden taxes) then it won't be worthwhile working for many more people. Any more tax increases will show Grabber Gordon in his true light, a great black hole into which is sucked the wealth of the nation, never to be seen again. In any event more tax increases will mean less workers and less tax receipts, less workers will increase the burden on state provision, necessitating in turn more tax increases. It will turn into a vicious circle and we'll truly be up the junction.
