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It's just not working.


wolfie
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The national debt reached £1.45tn in September, representing almost 80% of GDP and more than £100bn higher than at the same point last year.

 

Borrowing last month was £11.8bn, £1.6bn higher than in September 2013

 

Tax receipts are down even though employment is supposedly rising

 

In 2013 our trade deficit was £32bn and it is more than likely to be higher in 2014.

 

It seems clear that the Austerity programme to reduce expenditure, mainly by hitting welfare payments is not working.

 

So just like the last Labour government are the Tories secretly hoping that they lose the next election?

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The national debt reached £1.45tn in September, representing almost 80% of GDP and more than £100bn higher than at the same point last year.

 

Borrowing last month was £11.8bn, £1.6bn higher than in September 2013

 

Tax receipts are down even though employment is supposedly rising

 

In 2013 our trade deficit was £32bn and it is more than likely to be higher in 2014.

 

It seems clear that the Austerity programme to reduce expenditure, mainly by hitting welfare payments is not working.

 

So just like the last Labour government are the Tories secretly hoping that they lose the next election?

 

Simple, really. Taking money from the poor to give to the rich is bad for the economy. Everything the poor get goes into the economy, while the rich hoard it (or buy luxury goods from overseas, or spend it overseas).

 

Extracts from "The Culture of Contentment", John Kenneth Galbraith, First Published 1992 ISBN 0-395-57228-2 (after Reaganomics and Thatcher's trust in Milton Friedman's theories)

 

"The long years of high budget deficits when they were not needed made it seemingly impossible to initiate stimulating public expenditures when they were now needed. The celebrated tax reductions for the upper-income brackets and the accompanying economies in welfare distribution had substituted the discretionary spending of the rich for the wholly reliable spending of the poor. A reasonably equitable distribution of income is thought by individuals of liberal disposition to be politically virtuous; in fact, it is economically highly functional."

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