Posted by: John | March 18, 2008

Labour’s economic woes

The worst thing about the whole economic situation is that new Labour have conned people with a profligate frontman.

Again, I repeat what I said in an earlier posting – new Labour claim credit for the good times yet refer our

gaze to global credit crunch in the bad. The questions needs to be put:

a) If Gordon Brown is so good at the Economy why have things turned so bad?

b) If it’s all been show – and, let’s face it, anyone can do magic during fat times –  then new Labour have lied about their influence over the economy to gain votes.

c)  If they DO have such influence why has it all gone wrong?

d) If it is all down to US credit crunch what warnings did Gordon Brown give (given his uniquely excellent

experience and economic expertise) give to Bush and Cheney about these matters.

Can we have a detailed account about the warnings and

any papers relevant thereto?

e) What is their long-term vision for society – in the article above one thing struck me more than anything

and that is the standoff between the credit hungry and those that live within their means.

We have to decide as a party how we can lift those

that haven’t lived within their means due to avaricious lenders – but also flesh out (with the able Mr Cable)

a new economic reality that works for the many and not the few (where have i heard that before?)

and dissuades future overextending behaviour. We need to be on the eventual side of the hard-working

majority that play by the rules.

The Tories will just coast along watching the slow-motion car crash – we need to smartly give a sober assessment to the British people



  1. Liberal Democrats are always, & rightly, banging on about ‘fairness’ but our economy, & especially our taxation, is unfair on every level.

    The Independent did an analysis of the effects of the budget on the net incomes of 10 different family mixes. The results are so random that they are very hard to summarise but pensioners do not benefit until their individual or joint pensions exceed some
    £ 30000 p.a. and for the rest those on £10000 or less get a bit which is steadily eroded until the gross income is about £35000 when it gets a bit better, by typically £50 a year +/- some £ 20.

    The maximum gain is £ 90 per. annum. Is it really worth all the cost to us taxpayers of the Government fiddling with the system for such a trivial result?

    Legal Tax avoidance is so complex (non-doms to one side for the moment) that a banker was able to so structure the investment of his £500k bonus that most of it wound up in his pension fund & he got an £82k tax rebate on it.

    The other issue with the ‘City’ is one of retribution when it messes up. If a surgeon or an engineer or most other professionals make a serious error their career is often at an end. But the ‘City’ thinks it is immune from accountability & expects to walk away from the ‘wrecks’ it has created by its greed & incompetence with ‘contractual obligation’ payments worth more than many of us earn in a lifetime. And we are asked to believe that these people, who have created the current economic crisis, are our ‘best brains’ and our economy would collapse if we taxed them properly & they took their ‘talent’ elsewhere.

    Council tax – in England the difference in what we still think of as rateable value between Band A & Band H is 8times. But band H properties only pay 3times band A.

    VAT – £175 VAT on a £1000 TV, if you have a gross income of £20k represents a ‘tax rate’ of 0.875%. If you earn £100k it’s only 0.175%

    And so one could go on. What is needed is a root & branch reform of the system & a recognition that indirect taxes punish the have nots and favour the haves. Sadly I don’t even think that the estimable Vince Cable, who has a better grasp than anyone else in Parliament of these issues would be able to sort it out. For a start the voters wouldn’t go for it. How ANYONE on less than £50k pa, which is where most of us are, could believe that the Cameron & crew would do anything for them is a huge mystery. But they obviously do think he will. How else explain the Tory poll lead?

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