Still wrong.
Cut Interest rates
Cut taxation
Axe large parts of the state.
Since you agree that the public is better at spending than the state, cuts in state spending so long as the money is diverted to cuts in taxation is on balance a win
Just shows what an anorak I am... I recognised Snowden from first sight of the photo!
As for the economy, I'd be inclined to slash every none productive initiative, scheme and quango with immediate effect. Spend in areas where there's likely to be a profit or absolute demonstratable need. Cut taxes massively. Let the banks fail (but protect the depositors) and raise interest rates. Yes raise them.
WT: (Labour lost 80% of its seats).
Oh god! You mean they recovered...
Spend in areas where there's likely to be a profit or absolute demonstratable need.
This is the problem. Governments can't distiguish between the productive and the non-productive.
In the 1930's, there was a clear need for productive infrastructure, in the commons. Keynsian spending provides it, and the government at the time didn't have huge debts.
Currently, we have just had a Keynsian spending splurge. High taxes, high spending, high borrowing and still ended up with a crash. Why should the solution produce a crash, unless the solution is the wrong one?
Then you take the sensible wing of the Tories, such as Redwood. Even he engages in financially incontinent ideas like cross rail, because its in his interests when it comes to pork barrel politics.
Cross rail, when you do the sums is stupid. 1 billion a year in interest. 3 million a day in interest (no running costs yet factored in), and 200,000 passengers. 15 quid a day, plus running costs for a ticket. Just how many are going to pay that? Bugger all. End result, it has to be subsidised. Ie. The wealthy in work get to go to work from a long distance and get other's to pay for it, or other commuters get their service downgraded because of a lack of money.
Nick
Osborne needs to read the Bumper Book of Government Waste, produced by the TPA. That should give them a sensible place to start when it comes to slashing spending, then let the tax cuts roll!
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