Welfare and Pensions in the UK are Bankrupting the Nation

Posted by PITHOCRATES - February 26th, 2012

Week in Review

The United States followed the United Kingdom into the Industrial Revolution.  And emerged the greatest superpower on the planet.  We did well following her lead.  Emulating her capitalistic ways.  But we can stop now.  For we don’t need to follow her to where she is now.  Although we’re pretty darn close to that place already (see Osborne: UK has run out of money by Rowena Mason posted 2/26/2012 on The Telegraph).

“The British Government has run out of money because all the money was spent in the good years,” the Chancellor said. “The money and the investment and the jobs need to come from the private sector…”

The Chancellor’s tough words were echoed by Liberal Democrat Jeremy Browne, the foreign minister, who warned that Britain faced “accelerated decline” without measures to tackle its debt and increase competitiveness…

Mr Browne writes that reform of pensions, welfare and defence is essential to stop the departments “collapsing under the weight of their own debt”. “Just because the spending was sometimes on worthy causes does not in itself mean it was affordable,” he says…

Amid warnings that Britain urgently needed to adopt a more pro-business outlook, senior Conservatives have urged the Government to get rid of the 50 pence top rate of tax.

Figures from the Treasury last week suggested the policy was not raising the expected amount of revenue and was threatening to drive leading business people and entrepreneurs away from Britain. Dr Liam Fox, the former Conservative Defence Secretary, yesterday argued for the top tax rate to be scrapped, but added that cutting taxes on employment was even more important.

“I would have thought the priority was getting the costs of employers down and therefore I would rather have seen any reductions in taxation on employers’ taxation rather than personal taxation,” he told the BBC’s Sunday Politics show.

Oh Britannia, what has become of you?  And why in the world are we still following you?

Money, investment and jobs must come from the private sector?  Why that’s a novel idea.  One Britain had a century or more ago.  And one the United States had, too.  Before the welfare state made these two great nations less great.

Everyone knows that too much debt is a bad thing.   It’s no secret.  Bad things happen to people who can’t pay their bills.  And as it turns out, worse things can happen when a government can’t pay its bills.  Just ask the Greek government.  Who are dealing with riots in their streets.

The private sector created jobs long before governments ever did.  We need to remember this.  And we solve economic problems in the private sector.  Where there is a high price for failure.  Thanks to capitalism.  And profits.  Alien concepts to governments.  Which is why the greatest debt crises are always in the government.  Not in the private sector.  Something else we would do well to remember.

www.PITHOCRATES.com

Share

Tags: , , , , , , , , , , ,

Comments are closed.

Blog Home