The Economy and the Politicians

The economy in the UK is not as healthy as the Chancellor George Osborne makes us believe, although his much publicised efforts seem to be working – at least for the time being.

Wage increases are running ahead of price rises. Unemployment is falling. Home prices are soaring to a perilous level, which can trigger off a slump when demand shows signs of retraction.

Consumers are raiding the shops again, and economists are impressed by this fake growth.

Even the IMF is rubber-stamping it as likely to be the fastest in the developed world.

But the reality in the long-term is far from encouraging.

The runaway growth founded on cheap credit and easy money is not sustainable.

Interest rates kept at rock bottom will not work when real growth is achieved in a real world. Money printing ceases to have its easing effect, considered by many to be a hair-of-the-dog policy.

Government borrowing is not showing signs of slowing down, and by 2018 public debt will be double where it stood under Labour who had a huge party spending wildly, as did consumers, all fuelled by cheap borrowing.

Banks are not helping small firms and are only interested in piling up profits to enable them to justify the bonuses they pay to their elite management.

Successive governments have failed to control them and banks are still calling the shots with impudence.

Bail-outs are no longer possible as the government does not have any cash to do so. In that respect, the game is over.

Increasing taxes is not the answer for growth. On the contrary, it kills incentive, and frustrates innovative thinking. What it does, however, is lull the government into believing the fantasy that politicians often spin – i.e. the easy way to fill the coffers of the Treasury is through the punitive taxation of the middle classes, who are struggling to keep their head above water.

This bloody coalition government is constantly targeting them as if to say ‘you are the enemy of the capitalist system. We are after you for every penny you earn. Be on your guard, or we will get you’.

The Conservatives look after the very rich and their own chums, Labour after their own supporters and left-wing activists – and the middle classes are the orphans of the current system.

How pathetic politicians have turned out to be. No vocation, no real commitment, and no clear vision. And worst of all, they talk with a forked tongue and are greedy for power.

What an unpleasant and misguided combination. Can a social revolution be the answer?

Comments are closed.