Archive for February 27th, 2012

The UK’s Bank Account is Empty

So says two high-ranking government officials who would know.

In a stark warning ahead of next month’s Budget, the Chancellor said there was little the Coalition could do to stimulate the economy.

Mr Osborne made it clear that due to the parlous state of the public finances the best hope for economic growth was to encourage businesses to flourish and hire more workers.

“The British Government has run out of money because all the money was spent in the good years,” the Chancellor said. “The money and the investment and the jobs need to come from the private sector.”

What should George Osborne do to provide a tax cut?

Tax the rich more to allow the income tax rate to be lifted to £10,000Borrow more and worry about reducing national debt in future yearsWe can’t afford any tax cuts

Mr Osborne’s bleak assessment echoes that of Liam Byrne, the former chief secretary to the Treasury, who bluntly joked that Labour had left Britain broke when he exited the Government in 2010.

He left David Laws, his successor, a one-line note saying: “Dear Chief Secretary, I’m afraid to tell you there’s no money left”.

Mr Osborne is under severe pressure to boost growth, amid signs the economy is slipping back into a recession.

Conservatives have been saying this for a generation. Government spending bankrupts us all. The private sector is where economic growth comes from. Government spending may give us something of a jolt (if any), but the cost associated with it is far more than if the government would just get out of the way and let the engine run.

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    Things Heard: e210v1

    Good morning. Hopefully, we’ll be more consistent in posting this week, even though we have services at Church every evening this week as Lent kicks in with a running start.

    1. And here’s how it starts (more background here)
    2. The progressive past for the US.
    3. Which is likely why suggesting its demise might be a little early. This too.
    4. Although things like this suggest why its demise might be considered.
    5. Our energy President.
    6. Oddly enough, what the President said then, and says now, don’t quite jibe the way he’d probably prefer.
    7. “It’s major weakness” is at home moms … although no support for that statement is given why that is a weakness. Perhaps those economists thing at home moms sit on their couches watching TV and snorting bon bons (and not working as hard or harder than the average working stiff).
    8. This makes no sense at all.
    9. Hard work behind the Lin “miracle.”
    10. The blame/support network of education.
    11. If we had a more balanced press corps.
    12. Mr Krugman forgets he  is one of the rich.
    13. Cinema recommended.
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