Tuesday, 2 September 2008

Government Debt and Hazel Blears

I place economy among the first and most important virtues, and public debt as the greatest of dangers to be feared. To preserve our independence, we must not let our rulers load us with perpetual debt. If we run into such debts, we must be taxed in our meat and drink, in our necessities and in our comforts, in our labor and in our amusements. If we can prevent the government from wasting the labor of the people, under the pretense of caring for them, they will be happy. - Thomas Jefferson.

We have approaching £700bln in government debt and yet that moron, mad Hazel Blears, thinks the government has money in hand to blow on subsidising an already over-inflated property market.

Firstly, Hazel, the government never HAS anything. All it does is hold what was ours, supposedly on our behalf.

Secondly, when you owe £700bln, there is no such thing as spare change to spend. 

Thirdly, your schemes will result in getting your dirty fingernails further into people's lives. Admittedly, your administration is so bankrupt that you can only interfere in 5000 here or 10,000 there. It will be little action at a cost of £1bln, like buying a golden bucket to fend off a flood, but £1bln that would be better spent elsewhere. It will entrench the concept that "The State" will step in, that that State actually has a role at such a level. What next? Well, indeed - this opens the door to even more meddling. It opens the door to keeping this crackpot scheme going. 

House prices need to readjust. Government spending MUST fall. Government debt MUST fall. Taxation has to fall, has to be simplified and must not dampen economic activity.

1 comment:

sallreen said...

As the economic downturn continues, late payment is becoming an increasing obstacle to many UK firms, by restricting their cash flow. Now the FPB wants the government to set a precedent by paying its own suppliers on time. The FPB has written to the Secretary of State for communities and Local Government, Hazel Blears, to emphasis the impact of late payments on small firms.
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