Sunday, 15 May 2011

Double Debt.

In the last election, the population voted the conservatives, with the hope that the government would control this out of control debt, however in the last few months, under public union bribery, lobbying, threats of strikes, labour supported ukuncut street violence, civil service (those who run government) pressure and the recent public sector union rally. With this pressure on government, these so called cut backs, when accounting for inflation equates to just 3%.

So to pay off this out of control debt, government has resulted into further tax increases (breaking manifesto pledges) and even more being borrowed than expected. Just remember every time government increases taxes or borrows money, then the more money is taken from the private sector. Every penny taken out from the private sector effects all of us, limiting credit, pay freezes, pay cuts to job losses. Even after years of government borrowing all this money, jobs continue to be lost, prices continue to rise and the average pay continues to drop.

It is not possible to borrow our way out of this recession, the only solution is to cut back government spend, and cut it back big, not by 3% but 30%.

The bad news is that government borrowing is now predicted to increase according to a OECD report. In the case of scotland, the SNP has just won extra borrowing powers , with the SNP not hiding the fact it wants to borrow more believing in the Keynesian/central plan economic model. The below video illustrates the holes in the Keynesian economic model theory, and how borrowing the way out of a recession will never work, but just makes things worse..

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