Monday, June 28, 2010

Yeah, right

Well, that's everything sorted then, aye?
Leaders at the G20 summit in Canada have agreed to cut national budget deficits without stunting economic growth.

In other news, Our New Coalition Overlords have agreed targets to release unicorns into the wild, the USA has announced that it can't stop the oil gushing out but the oil pollute anything, and the Saudis have announced that women will walk around in bikinis whilst obeying sharia law.

OK, I might be exaggerating but—seriously—do any of these morons have any idea of how they are going to achieve any of this?

After all, Our New Coalition Overlords™, for instance, have announced savage cash cuts of precisely fuck all.
So the cuts are going to be long and deep, which nobody can deny.

Well, nobody that is, except extremely naive people who simply look at the government's spending projections. People like John Redwood, who at the TPA's budget briefing today, drew attention to the plain fact that under the Osborne plan, total public spending is not facing any cut at all. In fact, it is projected to increase from £697bn this year to £758bn in 2015-16, a rise of 9%.

So, when anyone talks of these "savage cuts", I can but utter a hollow laugh. Because, in truth, this government is going to carry on spending more and more of our money, and racking up more and more debt.

The simple fact is that there are no cuts; the government has simply said that they will increase the rate at which they spend our money by a smaller amount than the previous government wanted to. And the other simple fact is that the government is still overspending by far more than £100 billion per annum.

So, according to this BBC story, the G13 governments have agreed to "halve their deficits within three years" but—given that they seem unwilling or unable to sack hundreds of thousands of pointless bureaucrats and to cut hundreds of millions of pounds worth of pointless projects—our own government is not going to achieve anything like that.

Unless, of course, they massively increase taxes.

Of course, our government is already spending about 50% of the entire economic output of the country and so, if they raise taxes, you can be damn sure that they will increase the "stunting [of] economic growth".

So, you'll excuse me for thinking that this pointless posturing (at our expense) is going to achieve precisely fuck all, apart from making our leaders feel that they have "arrived" on the world stage...


Max the Impaler said...

The people of this country are suffering from the economic version of Stockholm syndrone.They've been fucked 'up hill and down dale' for that long,their grasp of reality is seriously impaired. As you and John Redwood have pointed out there are no cuts....but the MSM lead us to believe throats are being cut.However, the tax rises are real enough and GNP will suffer, and the managed decline will continue. FFS lets have some honesty from the people who should know better or a re-name of the Westminster coalition: wehaventgotafuckingclue party.

neil craig said...

Releasing unicorns into the wild could be done by a little GM technology applied to horses.

Economic growth while cutting spending could also be achieved by firing everybody in those, mainly regulatory, parts of government that prevent new technology. Eg fire everybody preventing GM development, building nuclear plants, the H&S regulators & housing "planners". That would get us growth at least matching China's 10%. More technological freedom & less government is the answer but for some reason those in government refuse to see it.

Blue Eyes said...

I agree that the rhetoric and the reality are miles apart, but a plan which reduces the share of the state relative to GDP over the course of five years is an excellent start. If Osborne can eliminate the deficit without actually cutting cash spending then he can declare a triumph and keep the state growing less fast than the economy over the following five years.

The overall result of which would be quite a significant reduction in the role of the state.

Don't dislike it just because the headlines were over egged!

Anonymous said...

Having lived in Zimbabwe, I can tell you that sub-inflation rises are actually cuts.

People can happily borrow at 10,000%, and expect to make a fortune if inflation is way in excess of that.

9% over 5 years does seem like a cut if inflation of 5% pa (and we're really above that now) would imply the status quo requires 34%. So don't poo-poo inflation, it give grist to the critics.

A 'real money' 25% cut is good news....

Unfortunately, as you imply, too little, to late. :(

Cigarette Sally said...

Well, why else will they raise our taxes?!?

Anonymous said...

what's the point of voting?

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