A comment on 101 days of Government

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.