Saturday, 22 March 2014

George Osborne, Another Feckless Chancellor

Mr Osborne will one day inherit and become Sir George Osborne Bt. His Legacy is likely to be even more Public Debt than he started with. Such are our feckless Chancellors of the Exchequer.

While Sir George enjoys his retirement, it will fall to our children and grandchildren to Service the Debt. Their taxes will pay the Interest which will fund other people's life styles - Sir George's in all probability.

That's because the Debt is not Borrowing to finance Projects which will yield a long term economic benefit and which will thus and eventually pay for themselves. No, it's not for roads or railways or nuclear power stations or High Tech Science parks. Nope, it's to pay for failed Wars and failed IT projects (where we are talking Billions not Millions). It's to pay for incompetence and maladmininstration of the kind which the National Audit Office routinely reports (which is why it will soon be abolished). It's to pay for electoral bribes, most of which are aimed at people over 50.

What should Young People do in response to the situation they will quite soon inherit?

At the moment, they play little or no part in British political life - understandably. They are the people least likely to vote. But if they are inclined to change their minds I suggest that what they need is their own political party and at the heart of its appeal this simple policy:

REPUDIATE THE DEBT

Yes, simply say, We are not going to pay the Debts our Parents and Grandparents and their feckless Chancellors (Brown, Osborne) burdened us with. They made no serious attempt to reduce it or pay it off themselves - that would have implied an all-round 30% increase in the taxes they were paying and No Way would they do that. No, they dumped it all on the shoulders of their children and grandchildren. Well, tough, It's Not Our Problem.

If the Debt can be liquidated by some rip-roaring Inflation, that would be one way out. But a straight repudiation is cleaner. If it cuts us out from International Capital Markets - the Big Bogey which will be waved at us -  that's fine: we aren't going to borrow from them anyway!

Since Referenda are in vogue, I suggest someone organises one for all British 16 to 25 year olds with a simple Question:

If you got the chance, would you vote for a political party which pledges to repudiate all Public Debt inherited from the period up to 2015?

That would, at the very least, provide a shot across the bows of politicians in the run-up to the 2015 General Election.


2 comments:

  1. Contrast with Norway who used its natural assets to create a sovereign wealth fund. When Great Britain had similar assets (North Sea gas) it squandered the money and now the opportunity has gone.

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  2. But Osborne's happy to cap incapacity benefit. The weak must fend for themselves as they're unlikely to vote Conservative.

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