Thursday, Jun 18, 2009
Spending up, tax income down! It will end in tears before bed time.
Time Online: Public borrowing hits record high of £20bn
"Tax revenues continued to be decimated across the board by contracting economic activity" etc,etc,etc.
Posted by tim miller @ 11:42 AM (974 views) Add Comment
17 Comments
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1. uncle tom said...
It wasn't borrowed - it was printed..
2. general congreve said...
Ah, yes. The elephant in the room. National debt.
It's possible as an individual (or it certainly was until recently) to borrow well beyond your means to repay in any reasonable time frame, and thereby give the short-term illusion of wealth, as you splash out on that big house, flash car and luxury holiday that you think you deserve. Unfortunately, the bank will eventually come knocking for it's money, at which point the burgeoning repayments start or you default, both scenarios in which you end up looking and feeling considerably poorer.
Now, why is it any different for a country? But we deserve the NHS, first class roads and public services (actually these are all debatable as they stand - but you get the point) say the British Electorate, most of whom are blissfully unaware of the relationship between earnings and outgoings, judging by the record levels of personal debt we have in the UK. Labour spend more good! Conservatives spend less bad! That's about the extent of the debate for your average voter. Sure the conservatives will win the next election, but you wait till until they implement the necessary cuts to get our economy sorted out, it'll be riots in the street time, just like under Thatcher.
People need to be educated and told the truth about this country's circumstances. We are broke and have got to start living within our means. If that means a lower standard of living and health care then that is that, you don't get something for nothing. Either way, reality will win.
Personally I'm voting Labour though, as they will continue to print money to fund debt, casuing sterling to bomb and my safe-haven gold to rocket, go Labour!!!
3. tudorian said...
@2 general Congreve
"Personally I'm voting Labour though, as they will continue to print money to fund debt, casuing sterling to bomb and my safe-haven gold to rocket, go Labour!!!"
I think you may have stumbled on the only good reason to vote labour. lol If there's another please let me know.
4. sybil13 said...
Do a search on Yahoo for : CEBR EXPECT THE HOUSING MARKET TO CRASH SOON. It will take you to a report from March 2009 with regards the loss of revenue from the financial services sector which makes quite interesting reader.
5. mark wadsworth said...
Yes another Big Fat Lie: "Tax revenues continued to be decimated across the board by contracting economic activity"
Sure, marginal tax rates in this country are more than 50% (once you take benefits into account, i.e. if a man who rents his home loses a job paying £20,000 and goes on benefits, his net income falls by less than half), but think about it - if the economy/GDP contracts by (say) 4%, we'd expect tax revenues to contract by 2% of GDP.
So why do the government expect deficits to be 10%+ of GDP? It's because they intend to plough ahead with massive increases in spending (well above and beyond slight increases in welfare payments or the odd bit of infrastructure that they can get done a bit more cheaply now that construction workers are all looking for jobs).
6. uncle tom said...
Mark,
You forget just how much tax revenue comes from Corporation Tax - the way that works gives the government vast sums when business is good, but then suddenly dries up when things are so-so.
It's a revenue stream that should be used to pay down the National Debt when things are good - not used to fund everyday expenditure.
7. mr g said...
general congreve@2
I agree with everything you say about the electorate, the following sums them up nicely:
Dear Labour Voters
We meet at last. It’s been 12 years and you’ve enjoyed every moment, haven’t you?
You had **** all but weren’t happy watching others get on, so you voted for the grinning slimeball who offered you something for nothing, didn’t you? Guess who got rich? You or him?
I digress. Let’s get back to you lot. All 9 million of you. How are things? Still smiling? You’ve had 12 years to make the best of it. So let’s look at what you have achieved. All 9 million of you.
Whilst you’ve been enjoying cheap credit, the rest of us have noticed that we don’t actually own our country anymore. Whilst you’ve been enjoying hot tubs, 4x4’s, gas fired BBQ’s, nail studios, the hairdressers and trying to keep up with the Beckhams, the Magna Carta has been torn to shreds and thrown away. Whilst little Tyson has been riding around on his Argos 27.9% APR financed BMX, 900 years of British History has been sh*t on.
Ever wondered why you don’t have a villa in Tuscany? Ever wondered why everyone else takes holidays in the Caribbean whilst you go to Menorca?
It’s because you are thick and lazy. And along came a Party that told you being thick and lazy was no good reason for you NOT to have what they had.
You stupid, stupid XXXXX. Guess where Tony Blair is now? Do you think he is drawing the curtains on his two bed terraced house, full with M&S trinkets, to hide from the postman? Like you are? Do you think he wakes at 5am, sh**ting it that the bailiffs will be there at 11 to take away his new Nissan?
Cut to the chase. You’re up to your eyes in it. £20K, £30K on the plastic? Tax credits aren’t going to help pay that are they? Overtime’s going to be cut because there’s a recession. Oooppps. That’s what been paying the minimum due every month, isn’t it? Whilst you’ve been buying sovereign rings, Tag Heuers and Tescos Finest to impress your parents, the party that promised you a shot at being loaded without doing anything has ****** it all up. And guess who is going to pay?
I know your parents were hard up. I know you grew up with **** all. I know your parents couldn’t give a sh*t about getting you through school properly. They were too busy wife swapping or down the bingo or social. I know you laughed at your teachers.
Guess what?
You’re stuffed. Totally, properly stuffed. You are going to lose your houses, cars, plasmas, koi carp and Nikes. Think your parents were hard up? Just wait six months. You will KNOW what a diet of pasta and ketchup tastes like. No more Dominoes Pizza in front of the Simpsons on Sky, no more Tandooris. Get your fat, lazy a*ses in the kitchen and cook something. Your kids will hate you as their PS3’s head over to Cash Converters, your wife will hate you as you trade in her Louis Vuitton handbag and you will hate yourself when you take a carrier bag out to the car to clear the glove compartment as the bailiff waits.
I hate all 9 million of you. I wish you all the plagues of hell. I want to see the four horsemen of the apocalypse in your Next furnished living room.
In your greedy, petty little pursuit of free “stuff” you allowed MY country, MY rights and MY life to be turned over by a bunch of snake oil salesman.
I hope it costs you everything, you sh*tes. I can handle 9 million suicides, and frankly with no major wars, there’s no other way we’ll get rid of you XXXXX.
**** off and die.
8. ted the red said...
mr g said@7
So you think only Labour voters are smug,greedy,grasping lazy and in debt?
Did it ever occurr to you that people voted Labour in 97 because they wanted some social progress and a better country?
9. enuii said...
Ted; note you say some Social Progress and a better country, both are hard to quantify but I imagine that the perceived lack of both is why we have seen working and middle class voters desert Labour in droves along with many of their donors.
10. stillthinking said...
@8
Every labour voter I spoke to said they want social progress and a better country, but actually they wanted their house to go up. Suggesting that labour voters are somehow altruistic socialists is disingenious, a lot of of people vote for the conservatives because they want social progress and a better country.
Facto non verba. There is no social progress and it is not a better country, and labour voters are exposed as sinking the economy for personal gain, the worst of whom are labour representatives.
11. Ted The Red said...
@10
The most indebted town in Britain is Camberley in Surrey that has always been part of a very safe Conservative seat.
12. This comment has been removed as it was found to be in breach of our Blog Policies.
13. ted the red said...
@10
Actually the most indebted town in Britain is Camberley in Surrey, part of one of the safest Conservative seats in the country, which disproves your ridiculous assertions re anyone who voted Labour in 97.
Labour may have turned out to be a disappointment with their economic screw up and illegal wars but your views about anyone who voted for them are laughable.
14. 51ck-6-51x said...
GC said, "Personally I'm voting Labour though, as they will continue to print money to fund debt, casuing sterling to bomb and my safe-haven gold to rocket, go Labour!!!"
- While I understand your reasoning and enjoy the wit, I feel it may be a little illogical.
Gold will go up in terms of Sterling, but at some point people will suddenly and without much advance warning shun Sterling within these borders, and you will be left with worthless paper if you have traded out, or gold to transport to a sensible country, where it will be worth roughly what you paid for it.
If you understood this already, then I certainly enjoy the irony as well as the wit, but I felt I had to point this out, being the pernickety fellow I am.
15. mr g said...
@8
I'm not suggesting for one moment that only Labour voters are smug, greedy etc. I've come across plenty of Tories who I consider to be "up their own a*se sh*ts" and who, no doubt, lived the same lifestyle as that quoted in "Dear Labour voters".
What I really enjoy about posting on this site besides the interesting discussion and sometimes sound advice, is how today I appear to have been cast as a Tory, yet back in April after the G20 protests I was accused by one individual of being virtually a card carrying member of the Communist party after referring to most of the protesters as being middle class because they were the only people with enough time to indulge in protests!
16. Marvin said...
re: all politalk.....our problem is that we've swapped real politik for popularity contests, watch the daily rants over the dispatch box, each pushing the other to state higher taxes and cuts to public services are needed as if this was a bad thing. Not only is it, not a bad thing, it is the right thing to do THIS GOVERNMENT IS IN DEBT, THAT DEBT NEEDS PAYING...........the sooner it is, the sooner they can get back to putting window dressing into every aspect of our worthless lives. And then maybe, just maybe some of us will be able to afford a house!!!! Personally I don't care who runs the joint (BNP excepted) I just want government to be well run. It isn't now and isn't likely to be in the near future.
Life don't talk to me about life
17. mark wadsworth said...
@ Uncle Tom 6, relatively little revenue comes from corporation tax, excluding North Sea companies, it was about £30 billion a year at the best of times, or about five per cent of UK tax receipts.