In this post I shall tell you the truth about the economy that George Osborne does not want you, the public to know. The Coalition is not cutting the national debt it is increasing the debt, leaving future generations at risk and responsible for bearing a burden of the welfare state. Politicians need to accept that, for the good of Britain and future generations they must address this issue. My Grandmother extolled the virtue of living according to your means, that everyone must cut there cloth accordingly, and I feel this advice must be heeded by politicians.
As Steve Baker MP has demonstrated in many articles, blog posts and lectures, the government regardless of which party has been in power has only been able to take about forty percent of GDP through taxation. To enable spending beyond the tax revenue, the Government has borrowed vast sums and future generations will be drowned in debt unless politicians are brave enough to admit that the welfare state as it is currently, is unsustainable and confront the issue. At present the cost in cash terms of maintaining the welfare state coupled by obligations such as Debt Interest runs at about £683 Billion whilst the Treasury raises about £592 Billion through various taxation mechanisms.
Some have commended the Coalition for taking the tough choices on the economy but have they really made tough choices? Have they really made meaningful cuts that places the UK economy back on a sensible footing? I feel that the argument made that Osborne should consider implementing Plan B is acceptable however this is not an endorsement of the economic policies advocated by Ed Balls. Rather than increase spending we should look to cut the state to below or level with the rate of taxation, this would be the responsible approach to take and it would mean that future generations do not pay for our folly.