After 101 days of the coalition Government, we now have more of an idea of the path in which it intends to follow in this parliament. We have seen the destruction of Building Schools for the Future (BSF) combined with huge reductions in front-line public services and cuts in the NHS, education and training. Additionally, we will soon see an additional tax burden on the poor in the form of a VAT increase.
It is clear that cuts will be made “bottom up”, rather than “top down.” Instead of increasing revenue through cutting tax loopholes exploited by the fat cats, cuts are being made to those who can least afford them especially the poor, children, and the unemployed.
In order to justify these cuts, the Rupert Murdoch controlled media have worked very well with the Government in order to raise public concerns regarding “the deficit” mentioning at every single opportunity, that the UK has “ran out” of money. In fact, prior to the banking collapse in 2007, the UK national debt was lower than other countries. The lost receipts, due to the greed of the bankers and fat cats, have been the biggest single contributing factor to the current national debt. Does it not appear fair and just, that the people responsible for damaging the economy, should be the ones who help to repair it?
The deficit itself is a lot more complex than media pundits with vested interests would possibly have the general public believe. The deficit is supported by Government issued bonds; unlike the Greek and Irish economies, the vast majority of Government bonds are purchased by individuals, corporations and fund managers within the UK. In effect, the UK Government is obtaining finance from itself and its people, allowing the private sector to make investments risk free. As a sterling sovereign currency, Sterling, cannot, will not and is unable to “go bust”.
The deficit does need to be addressed, however, the main question is how and when this should take place. The Government is beginning to prove that it is unable to respond to these questions in a fair and just way.
Globally, or at least in the Western World, there have been great, even colossal, increases in productivity and efficiency. However, at the same time, in real terms, staff wages have declined. Through increased personal debt and constant media encouragement to take on this debt, consumerism has encouraged the public to spend well beyond their means. This has created a false sense of wealth amongst not just the public in the UK, but across the world. However, due to the UK house price boom, this has been magnified in this country.
Now it appears that the Coalition Government intends to further decrease workers share of the nation's wealth, through its programme of dismantling the state. Ideology is behind the Conservatives plan to do this, not some altruistic ambition to reduce Government Debt.
It is often said that people get the kind of Government they deserve. Not even we have been that bad.
Thursday 19 August 2010
Wednesday 11 August 2010
Recent statistics have shown a welcome decrease in the unemployment figures. Some commentators even have the downright audacity to suggest that it was a reflection on the Conservative Government's economic measures. In truth, previous investment in training and employment have produced results and have kept unemployment lower than it would have otherwise been in a completely free market. The Conservative policy of ending investment in training and work programmes, particularly for young people, has already begun huge damage to the well-being of this country and will continue to do so during this parliament.
The scale of the cuts facing The Ministry of Justice, revealed earlier this week, has provided a frightening insight of how widespread the public sector cull will be. Also, in view of the VAT increase, and other anti-enterprise measures taken by the coalition government, the likelihood of the private sector replacing the jobs lost in the public sector remains extremely low.
This does mean that unfortunately, unemployment will rise again in 2010, as the free market is at present unable to create the wealth required for investment in staff. The huge Government cuts will send the economy back into recession as there simply is not the appetite for growth amongst business, with a culture of consolidation and “austerity” which has been encouraged by the Government.
The scale of the cuts facing The Ministry of Justice, revealed earlier this week, has provided a frightening insight of how widespread the public sector cull will be. Also, in view of the VAT increase, and other anti-enterprise measures taken by the coalition government, the likelihood of the private sector replacing the jobs lost in the public sector remains extremely low.
This does mean that unfortunately, unemployment will rise again in 2010, as the free market is at present unable to create the wealth required for investment in staff. The huge Government cuts will send the economy back into recession as there simply is not the appetite for growth amongst business, with a culture of consolidation and “austerity” which has been encouraged by the Government.
“Are we really happy to say that we’d give up our independent nuclear deterrent when we don’t know what is going to happen with Iran, we can’t be certain of the future in China?”
Before forming his Government, Cameron's staggering ignorance of world affairs was perfectly demonstrated with his unqualified attack on China, a valued trading partner, which has been both the recipient and donor of UK investment. More importantly however, to compare the state of Iran with a member of the UN Security Council is a gross insult to the Chinese people and an appalling gaffe. The correct action for Mr Cameron to take should have been to apologise. However, he did not.
“We were the junior partner in 1940"
Cameron has proven that its not just his knowledge of current affairs that is poor, with his comment that the UK was in fact merely a junior partner of the United States in World War 2. This is appallingly insulting to the millions of British people who gave their lives single-handedly defending Europe from fascism. Prior to Pearl Harbour, Britain didn't have any partners at all in fighting the Nazis. In fact the US only declared war, once Japan and the Germans had in-fact declared war themselves.
Cameron's attempt to change history in order to appease recent tensions between the United States and the UK was an extremely cynical action.
“Gaza Strip is a prison camp”
Cameron's recent visit to Turkey included a meeting with Turkish PM, Mr Eridgan, in which he joined in with anti-Israeli rhetoric that Israel was behaving despicably in its treatment of the Palestinians. Indeed, the cycle of military action and terrorism must be broken, but through careful, skilled diplomacy. Not through anti zionist rhetoric from Mr Cameron.
What makes this particularly concerning, is that Mr Cameron has also attacked the unstable Pakistani Government during a recent visit to India stating that Pakistan must do more to prevent terrorism.
Mr Cameron made such comments without any consideration for the effect this would have in Pakistan and how this may be used by Pakistani Militants and Taliban supporters. He has in fact managed to alienate both the Islamic and Jewish worlds.
Not only is Cameron managing to destroy the economy, he is managing to alienate the UK from the rest of world.
No doubt, more updates will follow on Cameron's gaffes and errors in the very near future.
Before forming his Government, Cameron's staggering ignorance of world affairs was perfectly demonstrated with his unqualified attack on China, a valued trading partner, which has been both the recipient and donor of UK investment. More importantly however, to compare the state of Iran with a member of the UN Security Council is a gross insult to the Chinese people and an appalling gaffe. The correct action for Mr Cameron to take should have been to apologise. However, he did not.
“We were the junior partner in 1940"
Cameron has proven that its not just his knowledge of current affairs that is poor, with his comment that the UK was in fact merely a junior partner of the United States in World War 2. This is appallingly insulting to the millions of British people who gave their lives single-handedly defending Europe from fascism. Prior to Pearl Harbour, Britain didn't have any partners at all in fighting the Nazis. In fact the US only declared war, once Japan and the Germans had in-fact declared war themselves.
Cameron's attempt to change history in order to appease recent tensions between the United States and the UK was an extremely cynical action.
“Gaza Strip is a prison camp”
Cameron's recent visit to Turkey included a meeting with Turkish PM, Mr Eridgan, in which he joined in with anti-Israeli rhetoric that Israel was behaving despicably in its treatment of the Palestinians. Indeed, the cycle of military action and terrorism must be broken, but through careful, skilled diplomacy. Not through anti zionist rhetoric from Mr Cameron.
What makes this particularly concerning, is that Mr Cameron has also attacked the unstable Pakistani Government during a recent visit to India stating that Pakistan must do more to prevent terrorism.
Mr Cameron made such comments without any consideration for the effect this would have in Pakistan and how this may be used by Pakistani Militants and Taliban supporters. He has in fact managed to alienate both the Islamic and Jewish worlds.
Not only is Cameron managing to destroy the economy, he is managing to alienate the UK from the rest of world.
No doubt, more updates will follow on Cameron's gaffes and errors in the very near future.
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