Ah, those terrible cuts! We have protests, we have rage, we have the incomprehensible irony of people occupying public spaces against global capitalism, while yakking on their spanking new iPhone 4S’s and sipping a Starbucks decaf skinny vanilla cappucino. And we have people complaining bitterly that their sense of egregious entitlement is being attacked by unfeeling, heartless Tories.
Labour are crowing about the violent cuts and rubbing their hands at the misery they caused being blamed on the Tories. The Lib Dems are complaining like stuck pigs from both of their faces.
There is actually a claim that the country’s largest employer by a country mile may actually be shedding 0.1% of the dross and and makeweights that we’re paying so generously for.
So, overall, you’d think, “OK, so this is bad, but at least the country is paying off its debts and things will get better in the long run?”
Er … no.
In the first half of last year, when the coalition came to power, total public sector spending jumped 4.4 per cent (over £13bn) compared to the year before – even allowing for inflation. That includes other areas of expenditure, such as local government spending and state-owned corporations’ spending, not just that of central government.
This year, the first six months saw another £7.5bn nominal rise in total public sector spending (which excludes the effects of financial sector interventions). When inflation is taken into account, this does amount to a decline – of 0.43 per cent, compared to 2010.
Yes, total public sector spending, even in real terms, was just 0.43 per cent lower than last year – and still 3.9 per cent higher, in real terms, than in Labour’s final full year in power (2009).
Tax receipts are down because the economy is in the doldrums, so all that money has to come from somewhere. And it’s exceedingly ironic that despite the one justification that Cameron has for all the cuts – to reduce debt and interest payments – the Tories are actually borrowing even more money than Gordon Brown!
Because Cameron’s Tories are not in the least conservative, but the true heirs to Blair, the “cuts” are a mendacious nonsense played out in the empty rhetoric of Westminster’s professional liars, there are no real cuts, certainly nothing that is going to prevent the destruction of the pound and the economy with it.
I had hoped that by some miracle Gordon Brown would have won the last election, presiding over the economic demise of Britain would have destroyed the Labour Party completely and losing would have demolished Cameron and possibly given us the prospect of a proper “smaller government” Tory Party. It would have been unpleasant and painful, but the at least proper economic recovery would have begun. All this “stimulus” and “quantitative easing” is simply delaying the inevitable and the longer its delayed, the more painful the eventual correction is going to be.
British people (and people around the world) are in serious denial. There is a massive crash coming and its long overdue. All the government is doing is postponing the disaster and making the eventual recovery take longer and hurt a lot more.