Why the government spending spree is all wrong!
As we have heard for some time now, the government intends to spend big to get us out of the current economic slowdown but in the eyes of many this is totally wrong. Using the scenario which the government is in, with income falling and expenses going up, how does that translate to the traditional tax payer?
Can you imagine if you increased your spending to try and do your bit for the economy? Who would jump in to bail you out? Who would be there to help?
The fact is that when in a hole you really need to stop digging and take stock of what is actually happening. The government seems very much on the road to a scorched earth policy where they literally want to spend as much as possible to try and refloat the UK economy. If this backfires, as it still could even though it looks unlikely, the problem is that the poor old tax payer will always be there to take the strain, to cover the massive debts.
Whatever the government say and do, this policy of spend, spend, spend is very risky as we have now gone past the point of investing into the economy and we are now just pouring good money after bad. For a Chancellor who prided himself on good bookkeeping it has all gone wrong for Gordon Brown and while he is fighting back, it could still be too little too late.
Share this..
Related stories
Equal Pay Day shames UK businesses
A campaign by the Fawcett Society which has been deemed "Equal Pay Day" has highlighted the massive inequality in the UK business arena with regards to the pay of women and men. While the figures do vary across the country from county to county and from business to business, the average pay discrepancy between men and women doing exactly the same job now stands at 17.1%. However, this is not the w...
Read MoreThe US economy is back on the growth path
The US government is this evening looking towards the future with more confidence than it has for some time after the announcement that between July and September this year the US economy increased by 3.5%. After a year-long reduction in the size of the US economy this is a welcome turnaround and officially confirms that the US economy is out of recession.
There were a number of fac...
Money can't buy success in Dubai
If there is one state in the world which confirms the opinion that you can't buy success, at this moment in time anyways, it would have to be Dubai. Despite the fact that the Dubai economy has literally risen from nothing to become one of the former hotspots of the worldwide investment market this was done against a backdrop of ever-growing debt. The ruling State family have built up around $80 bi...
Read MoreHas consumer confidence bottomed out?
News that consumer confidence appears to have picked up over the last month has been assumed by many to signal the end of the consumer confidence crisis. However, the consumer confidence figures reflect the views by many that now is the time to make a substantial purchase but confidence about the economy and the outlook for next year is still falling. Whether consumers are now wrapped up in the fe...
Read MoreNew Lloyds bank chairman starts a cull
Sir Win Bischoff, the incoming chairman of Lloyds bank, has this week begun to re-organise the company's boardroom with two non-executives set to stand down. This is the first stage of a major reorganisation of the operation which will see new directors brought in and those from the "old board" jettisoned at some point. So what exactly is going on?
Lloyds bank is now 43% owned by th...