Tax receipts soared in the Noughties, from this artificial credit boom, and Brown spent every penny of it, and more! He increased public spending by 5% p.a. compound, from 2001 onwards, creating a bloated & inefficient public sector, and somehow managed to still run spending deficits in the boom years. As the tide went out with the banking crisis, and tax revenues collapsed, this left us in the mess we are in today.
THIS is what Labour need to 'fess up to. That they were imprudent, totally incompetent across a broad range of areas, and under their stewardship the UK has plunged into the worst crisis since the 1970's (which funnily enough was also under Labour's stewardship when we had to go to the IMF for a Bail-Out).
THIS is what Labour need to 'fess up to. That they were imprudent, totally incompetent across a broad range of areas, and under their stewardship the UK has plunged into the worst crisis since the 1970's (which funnily enough was also under Labour's stewardship when we had to go to the IMF for a Bail-Out).
Every Labour Govt in history has ended the same way - with a financial crisis brought about from over-spending. It's what they do. Every time. I pity the young people starting out in their careers now. A hefty chunk of their lifetime taxes will be used to service (let alone repay) the debt which has been needlessly incurred in the past 5 years. It's about £500bn at the moment (on top of £400bn existing debt), and will continue to rise for several years yet.
My generation should hang our heads in shame that we will selfishly leave a legacy of over £1trn of debt to the next generation - not to pay for a World War. No, just because we've been too greedy to accept more modest public services now. Instead Brown built up a completely unaffordable public sector that future generations will pay for, with interest. They will have correspondingly worse public services. What a smashing legacy. Well done Brown. Let's hope these dreadful fools are kept away from the levers of power for a generation (at least).
“The trouble with socialism is that you eventually run out of other people’s money.” – Margaret Thatcher
"We used to think that you could spend your way out of a recession and increase employment by cutting taxes and boosting government spending. I tell you in all candour that that option no longer exists."
James Callaghan
“The trouble with theoretical economists is that they don't understand that when you have a deficit, you can only finance it by borrowing, and you've got to persuade people that it's worth lending money to you and that they'll get their money back... there's no way of escaping it.” Dennis Healey during the 1976 Stirling Crisis
"We used to think that you could spend your way out of a recession and increase employment by cutting taxes and boosting government spending. I tell you in all candour that that option no longer exists."
James Callaghan
“The trouble with theoretical economists is that they don't understand that when you have a deficit, you can only finance it by borrowing, and you've got to persuade people that it's worth lending money to you and that they'll get their money back... there's no way of escaping it.” Dennis Healey during the 1976 Stirling Crisis
No comments:
Post a Comment