Correct me if I am wrong.

We may not be in recession right now, but it certainly feels like it. We have all suffered since the coalition took power, and they will continue to inflict pain, because this the government of high taxation, and high unemployment, hasn't any idea how to get the economy going. The Coalition say they will not spend their way out of this mess, but in actual fact they are spending their way into it. Debt if the growth forecasts are to be believed will be higher in 2015 when this government has gone, than when it took over. The growth figures are so highly optimistic they are not even credible.

So what is the real problem?

The real problem is that the government are still spending more than they receive in tax revenue. Unemployment is at a 17 year high, meaning that the government will have to spend more on the benefits bill. The governments answer is more cuts which will put more people out of work, and increase government expenditure.
The proposed increase in fuel duty of 4p per litre, would have fuelled inflation,
and pushed prices higher, as well as pushing more businesses into liquidation.
More people out of work, means more benefits to be paid out, less tax revenue, higher prices, higher inflation, and further tax rises and government borrowing.

So the problem is clear

And the answer is also clear, get more people into work, get more tax revenue, the debt comes down and people in work can spend more than those on benefits.
The government keep telling us that they have spent £xxx billions on long term schemes to get the country on its feet in 5 to 10 years time. Government and Local Authorities can do something if they wanted to, instead of wallowing in self pity, blaming the last Government, The Banking Crises, the EU, the Financial Crisis, the Recession, Strikes, the Unions, Bad Weather, and anything else they can think of. This government is now saying the problems stem from the last government who allegedly brought us out of recession too quickly.

So how important is it for the government to keep people in work?

Without the working man, or woman a terrible thing happens: Nothing If there is such a thing as the average working person, the government will take a minimum of 40% of their earnings in tax. Starting with income tax and national insurance, both of which go up the more a person works. Then there is poll tax, tax on their utility bills, gas electricity and water. There is tax on virtually everything you buy, tax in the form of duty on your entertainment, and of coarse tax in the form of duty on petrol. That is after you have paid tax on the purchase of your car, and tax on the insurance. If you have money left over and put in the bank, you are taxed again. You pay tax when you buy a house in the form of stamp duty, tax on your house insurance, capital gains tax when you sell your home, and so it goes on, sometimes even tax on your pension. When you die they even tax you on that.

It is obvious that the government should be more interested in keeping people in work, instead of paying them to be off work. The government will tell you it is up to the private sector to create jobs, and pull the country up by its boot
straps. They will point to their promised investment into infrastructure sometime in the future; they will point to the money that have promised for the so called enterprise areas, all too little too late. Cameron and Osborne announced at the Conservative conference £3 trillion for infrastructure investment with details to be given in November. No mention of £3trillion in November, just more unemployment.

The Solution.
In the next post

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Vic Farron RFT Express. .
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