Wednesday, December 05, 2012

It's the dawning of the age of Austerity

age of Austerity, Austerity! Austerity!

Well okay not for the government who are spending less yet claiming more tax; or for the larger companies with their tax havens; or the energy and fuel companies raising prices beyond inflation; just, you know, for everybody else.

Perhaps someone should tell George that one of the signs of insanity is doing the same thing over and over again while expecting different results. For anyone on the 'ground floor' the current situation isn't difficult to comprehend - the banks are scared to loan out money; energy and fuel cost us more and in turn raise the prices of goods; and more money is being removed in tax and having to be spent by individuals on cut services. Oddly enough that means that people have less money. Now when people have less money, they spend less. If they spend less that means businesses don't get as much money unless they're providing some essential need or can use the threat of imprisonment to claim it.

That means growth slows, and when growth slows banks are even less likely to want to loan money, and people are even less inclined to spend money; which means growth slows even more.

And George's solution to this - spend less money.


Growth needs to be encouraged and the banks certainly aren't going to do anything; so it's up to the government, but the message from them is - hoard.

Here's an adage for George- You've got to spend money to make money. Yeah I know with a personal fortune of around £4m and a trust fund in daddy's company, money just seems to throw itself at you with little effort, but perhaps you can put that Modern History degree from Oxford to use and consider how recession was dealt with in the past what worked and what didn't. Historically your current plan has never worked.

Yet this is the Conservative rhetoric and who are we to ask they place results above policy?


Thomas said...

That is where they want us to stay, right where we are now mate, on our knees. This recession is for ever, and as you know its all fabricated cos the money is still there, as there are companies thriving, the big boys. I don't need to tell you cos I know you are on the ball by your rhetoric, George Orwell warned us all, but no one wants to listen do they.

FlipC said...

I know you're working backwards, but you may want to jump to this post.

In theory government cuts could be a long-term good thing if handled correctly, shame it isn't. I've another post fermenting in my head regarding debt and how current policy may be changing how it is being viewed.

FlipC said...

Oh addendum - we do seem to oscillate between 1984 and Brave New World. I have to say I find the latter the more scary; at least in 1984 totalitarianism was a lot more obvious even to the indoctrinated.