Mar 212013

Maggie 003Generations will look back at yesterday’s budget disaster as the tipping point. A Conservative party that ostensibly believes in fairness, capitalism and libertarian values has all but abandoned those principles in favour of state-sponsored redistribution and socialism.

Debt targets have been all but abandoned. Debt to GDP ratios will not start to decrease until 2015 and total debt will continue to grow until 2017 / 2018 at the earliest. Even these dire forecasts are based on the unrealistic assumption of growth returning to trend and inflation staying in the sweet spot of 2-3%.

There was no supply-side reform, none of the much needed cuts to current spending, including the vast welfare budget, foreign aid or the NHS. Public sector workers will continue to receive pay of up to 20% higher than the private sector, along with gold-plated, guaranteed pensions.

Osborne’s scheme to prop up the housing bubble by providing taxpayer funded interest free loans of 20% to house buyers anything the Socialist Workers party could have dreamed up.

Has he learned nothing from the sub prime crash. He’s going against everything that the conservatives used to stand for. Instead of reducing people’s dependency on the state he’s now nationalising mortgages too.

The pain of these decisions in this budget disaster will haunt the UK for many many years to come. Osborne has taken a further step to mortgaging the future of the country and committing a further generation to borrow and spend what they don’t have.

To make housing more accessible requires a massive house-building programme, something the private sector would leap to without a single penny of government money if only planning rules were relaxed and land made available. But nothing was done on this front. Instead more people will chase the same number of houses, propping up the housing bubble and further haunting those who are awaiting housing prices to drop so they can buy their first home.

Before yesterday it was hard to see how Osborne could get worse, but he’s managed it. Osborne, Ed Balls and Gordon Brown are all the same person I think.

  One Response to “Budget Disaster – Britain is on the path to ruin”

  1. Lib, Lab, Cons have all goverened, using the same policies for generations i.e. allowing foreign companies to take lucrative contracts, and bring in their own workers.
    When labour was in government for 13 consecutive years, more than 80% of the newly created jobs went to foreign workers, and our companies were still moving abroad, remember the Icon Cadbury’s to name just one business that was lost, and so it still goes on today with just as many new jobs going to anyone but the British people.
    How can our country carry on like this, with over a million jobsless youngsters, and a few million more adults.
    We can only compete, and have a half decent country if we are bold, and take a leaf out of Germany’s book, then start training our own people, build our manufacturing base back up to what it used to be.
    Business may kick off because they will have to chip in to help train our own workforce, but hey, so what? there is no alternative to having a thriving country!

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