I was in the gym during my lunchbreak – no one else was there at that time, so I switched the TV over to the Budget and caught most of Darling’s speech and all of Cameron’s reply. It’s the first time I’ve done a one-and-a-half hour workout, but it was compulsive viewing.
Compulsive because of the shocks. The 50 per cent tax rate. The public finances and the £606 billion debt over a few years. The paltry measures designed for Labour to win – or at least squeak through – the next general election.
John Redwood has highlighted in his speech and on his blog that this was the Damian Mc Bride Memorial Budget, which through, “Bank nationalisation, a violent cycle, and grotesque excess in public spending,” has decimated the public finances.
All in all, it was a shameful budget by a discredited Chancellor. Labour has presided over a dreadful economic collapse – the inevitable result of the boom-and-bust policies that are Brownian (dis)economics.
In order to pay for the bank bailouts and associated largesse, we are all going to suffer. Darling said ‘we have to do something’ but it is not clear that the billions he committed to his ‘measures’ will do very much. In fact, it is difficult to see how any of these measures would actually stimulate the economy.
So what we have is not only a discredited Chancellor and his Sub-Prime Minister (don’t get me started about the Second-Home Secretary and the rest of them) who have created an economic disaster. But who also don’t know how they can possibly get us out of it because they have dug us deeper.
There were measures there for jobs and houses, but they won’t do much to stop the devastation.
And the economic predictions were based on cloud-cuckoo-land assumptions that the economy will all be rosy in a few years’ time. After the election, when we have to make tough decisions to get Labour back in to keep making a mess of things…
… while the signals are being sent to the wealth-creators and innovators that they’ll be paying for much of the tax spend required to pay off the debt …
… which will naturally send many of them away to sunnier climes with lower tax rates …
And, when the rest of us (assuming you, like me, aren’t considering moving abroad) are left here, it will be our taxes – if we have one of the few jobs that are left, after the job-creators go and many of the other jobs are taxed out of existence – and our children’s taxes (if there are any jobs left then) that pay for Labour’s big mistakes.
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