Friday, March 27, 2009

I’m starting to feel embarrassed for him now. Just kidding.

Chile leader to Brown - we saved in the good times

Gordon Brown was embarrassed for the second time in as many days on his tour of South America today as his Chilean host explained how the country was able to protect is economy because it had saved cash in case of a downturn.

Posted by flintster1994 @ 10:21 PM (944 views)
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4 thoughts on “I’m starting to feel embarrassed for him now. Just kidding.

  • Chile is a great place to be right now. Not only is the weather a lot warmer, but they also have a positively frugal 3.8%* debt-to-GDP ratio. This compares unfavourably with Britain’s 47.2%* figure. Chile has spent the last decade assiduously paying down debt, and as a result are now well-placed to thrive despite the global downturn. The FT covered this story last month.

    Financial Times: Tables turned: a lesson from Latin America for the west

    In 1997, Blair and Brown campaigned on a pledge to marry economic efficiency with social justice. Unnoticed by much of the world, Chile has done just that. Chile’s economic growth rate has averaged more than 5 per cent since the country rid itself of Augusto Pinochet’s dictatorship in 1990. Twenty years ago some two-fifths of Chile’s public spending went on debt servicing. The figure now is zero. Instead 70 per cent of all public spending is on social programmes.

    Mr Brown might feel particularly shamefaced. Had he stuck, as chancellor and prime minister, to the prudence promised in 1997, Britain would not be facing such a dreadful economic bust – nor an annual budget deficit that looks set to tip over 10 per cent of national income.

    In truth, once the recession is over, the organising fact of British politics will be the huge deficits that governments are now accumulating in the effort to stave off slump. There will be room neither for tax cuts nor spending increases. There will instead be a demand that governments, left or right, spend money more effectively.

    (*2008 estimated figures; source: CIA World Factbook. Obviously Britian’s debt is a lot worse now, with some estimates well in excess of 100%.)

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  • bidin'matime says:

    Like his mate Tony Bliar, Brown has always had a problem telling the truth. Bliar thinks he’s got away scot free – wouldn’t it be a delicious irony if his own legacy was brought down by his association with the worst Chancellor this country has ever known…

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  • Ah, yes, Chile. Awful place but visually pleasing!

    Anyway, so Gordon Brown visits a school to show that he cares about education.
    He opens his red case computer, does some typing, and then pauses with a frown on his face for several minutes.
    One child says to his brother, “You see, Mum and Dad were right! He doesn’t know how to save.”

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  • mountain goat says:

    Gordon Brown in South America just before the important G20 meeting? Any chance our banks have leant too much money to this part of the world?

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