What pain means to Britain
When the economy is down and you increase taxes, the economy will continue to go down because people are spending more on government and not increasing productive output. That’s what we think in America. So, when I hear calls for austerity accompanied by increased taxation, it seems out of kilter.
The tough measures are unavoidable because government expenditures outstrip revenue production and the Chancellor of the Exchequer and his leaders don’t want to decrease the size of their government. Now, I understand that Great Britain is a socialistic oriented country. That means a large segment of the population earn their living from government employment.
The harsh change is to shift the economy to a more capitalistic society where greater emphasis is on production of manufactured goods. We have the same issues in the USA.
In fact, many British companies are conducting business in the USA with considerable success. There is a natural affinity. Perhaps more collaboration could increase the shares of the global pie through more partnerships.
We must all deal with the debt problem too. Doing that means preserving capital for private investment in contrast with government gobbling it up. Such gobbling should be avoidable Mr. Chancellor.
“Britain unveils painful budget
The plan calls for increases in sales and capital gains taxes and cuts in welfare benefits. George Osborne, chancellor of the exchequer, says the tough measures are unavoidable.
By Henry Chu, Los Angeles Times
June 22, 2010 | 12:51 p.m.
Reporting from London —
Britain's new coalition government on Tuesday unveiled the country's most painful budget in a generation, outlining a program of deep spending cuts and tax hikes in line with the mood of public austerity sweeping across Europe.
George Osborne, Chancellor of the Exchequer, said drastic measures affecting everyone were unavoidable to mollify jittery investors and tackle Britain's biggest national deficit since World War II. The emergency budget calls for rises in sales and capital gains taxes and reductions in welfare benefits to help erase the government deficit within six years.
Osborne pledged that the austerity plan would protect society's most vulnerable, despite immediate criticism to the contrary, and rejected arguments that such a harsh package of cuts would strangle economic growth and precipitate a double-dip recession.
"Unless we deal with our debts, there will be no growth," Osborne told lawmakers in Parliament. "A credible plan to cut our budget deficit goes hand in hand with a steady and sustained economic recovery with low inflation and falling unemployment."
He added that the Tory-led coalition's promise of tough action on the deficit had increased Britain "credibility in international markets."
Britain's decision to cut spending comes at time when governments around world are trying to decide whether to continue stimulating their economies out of sluggish growth or begin paring back their rising debt levels. Last week President Obama wrote a letter to fellow leaders from the Group of 20 nations, who are meeting this weekend in Toronto, warning them against slashing programs designed to stimulate economic recovery.
Osborne's budget suggested that Britain was not moved by his plea.”
Pain would be widening streets
Pain is rising damp
Pain is we're out of cream
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London, United Kingdom