Osborne is categorically promising to make us worse off | Tax Research UK

'Con' artist: George Osborne.

‘Con’ artist: George Osborne.

Thanks to a Vox Political commenter for this:

The Guardian has reported: George Osborne has warned he may have to impose bigger than expected cuts to public spending towards the end of the current parliament as the “storm clouds” in the global economy hit economic growth.

This is utterly bizarre. GDP is, it is pretty universally agreed, made up of four elements:

GDP = C + I + G + (X – M)

where:

C = consumption

I = investment

G = government

X = exports

M = imports.

What George Osborne is saying is that GDP us at risk of falling.

And let’s be clear, what we also know is that we are already operating in an economic environment where we are using less than the UK’s economic capacity.

GDP could be bigger than it is, but is being constrained because there is a shortage of demand (so C is under performing); business is under investing because business is sitting on massive likes of cash (so I is under performing); G is under-performing because of austerity and we know imports are apparently growing faster than exports. No wonder George says it is not a pretty picture.

And despite knowing all this Osborne is saying that if C, or I or (X – M) fall then he has an obligation to reduce G. In other words, if these three elements of GDP is falling George Osborne is saying that he has a  duty to exacerbate the trend by cutting government as well.

This is utterly illogical, for three reasons.

Read them at: Tax Research UK » Osborne is categorically promising to make us worse off

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5 thoughts on “Osborne is categorically promising to make us worse off | Tax Research UK

  1. philipburdekin

    The idiot is now a useless tawt, with absolutely no chance of redemption. Between this tawt and the other tawt, they are trying to kill us all off or maybe we should start to stand up for ourselves, The French do.

    1. Jackie Cairns

      This tawt and that tawt make one BIG useless tawt. and shove the other tawt in with it C/Hunt and IDS you have a party of tawts. lol come on get these useless gits out.

  2. jeffrey davies

    to much of the white stuff hardled his brains untill the fraudulent banksters are jailed on it goes they still at it

  3. Tim

    So where in the welfare budget can even more savings be made? Already people like Freud are suggesting those affected amongst the working poor do an extra 200 hours a year to make up the shortfall – I mean, seriously! Doesn’t this fool realise that people can’t just magic up five or six extra weeks of work when they’re already working full time? Awful. Just plain awful.

  4. openlinesuk

    You are really just advocating Keynesian policy, quite rightly IMHO. Interest rates are so low that monetary policy has been completely disarmed and discredited, as even the most conservative international institutions now seem to agree. The privatisation experiment has been a disaster. Focus on incentives is a smoke screen for tolerating a mix of extreme wealth and wretched poverty and justifying it. Nothing but self-justified mismanagement. Time for change.

Comments are closed.