Horner's Corner

Tag: deficit

Ten economic facts that every person opposed to Osbornomics should know

by on May.21, 2011, under economics

Ten economic facts that every person opposed to Osbornomics should know

1. Debt as a percentage of GDP is one quarter what it was in 1945 but higher than 1997.
2. Britain, however, has outgrown every economy in the G7 between 1990 and 2010
3. The result of this is that Debt Interest as a portion of GDP is actually lower today than it was in 1997.
4. In fact, Government spending on servicing the debt is 30% lower today than it was under Major.
5. Tory debt interest would be £41.3bn today thus Labour have added £8.7bn to Major’s debt interest.
6. By bailing out the banks and investing in a Fiscal Stimulus Package, Darling got the economy growing again

7. Following the recovery from 2009 tax revenue is to soar by an expected £93billion in 2011
8. The deficit has shrunk year on year since its projected peak of £175billion in 2009. 

9. From a forecast [2009-10] peak of £175bn the deficit is set to finish this financial year at £121bn [2011-2]
10. Osborne will succeed in cutting the deficit not through cuts but only by taxation, since cuts destroy growth
Labour need to make the above points loud and often if they are to change the narrative established by George Osborne and the right wing press since 2009.

You don’t have to be a Labour Party member or supporter, or even a Keynesian to see that the case against the Tory/Liberal line on the economy has to be made much more clearly and effectively that it is now. And that is not enough: the case for a worked out alternative strategy has to be articulated, one that doesn’t sound like a slightly milder version of ‘Osbornomics’. What we have at the moment resembles the scenario described by Naomi Klein in her book and film ‘The Shock Doctrine’: the manipulation of a crisis as a way of launching a far reaching neoliberal onslaught on ordinary people like us, and on the public services we rely on. At the moment they are getting away with it. This must change.

I got this from:

The Green Benches: Ten economic facts that every person opposed to Osbornomics should know.

Many thanks to Green Benches.

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Tax the rich to pay the deficit

by on Aug.17, 2010, under economics, politics

Greg Philo has a solution, and it’s popular:

The total personal wealth in the UK is £9,000bn, a sum that dwarfs the national debt. It is mostly concentrated at the top, so the richest 10% own £4,000bn, with an average per household of £4m. The bottom half of our society own just 9%. The wealthiest hold the bulk of their money in property or pensions, and some in financial assets and objects such antiques and paintings.A one-off tax of just 20% on the wealth of this group would pay the national debt and dramatically reduce the deficit, since interest payments on the debt are a large part of government spending. So that is what should be done. This tax of 20%, graduated so the very richest paid the most, would raise £800bn. A major positive for this scheme is that the tax would not have to be immediately paid. The richest 10% have only to assume liability for their small part of the debt. They can pay a low rate of interest on it and if they wish make it a charge on their property when they die. It would be akin to a student loan for the rich.

The tax would be extremely popular. We commissioned a YouGov poll of over 2,000 people to test attitudes. There was very strong support, with 74% of the population approving 44% strongly approving. Only 10% did not approve, and agreement was spread right through social groups, with those of the highest income being slightly more supportive than the lower. The strongest support came from those over the age of 55, with 77% in favour 47% strongly. This is an extraordinary result given that there has been no public discussion of this proposal and that the very negative consequences of the alternatives are only just beginning to emerge.


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