Budget 2011

So exiting...

The promise of a slight alleviation in petrol prices, misguided views on inflation (rather than recognising the problems with money supply & interest rates), failure to realise that governments can't stimulate actual growth, pitiful tax breaks bribes to keep the public in line, failure to recognise the damage of NI and business taxes, absolutely no attempt to deal with the national debt, all whilst labour & the BBC whine that the "cuts" go too far!  I think I've summed up the hole affair, time to see if my predictions are correct.

Surprise surprise, just switched onto the BBC news channel to find some fool (missed his name unfortunately) suggesting that the government needs to provide more stimulus, put money into peoples pockets so that they spend in high street stores, just to keep our retail sector alive.  Whilst I certainly have no issue with letting people keep their money, the suggestion that the government should apply stimulus to keep the economy going is utter nonsense.  You can throw as much paper at goods as you want but eventually TopShop will realise that they be better off with a box of toilet roll.  Real wealth comes from production, instead of throwing paper money around we need to remove barriers to growth; NI, corporation taxes, income tax (to get people spending/saving) & raise interest rates to encourage investment.

I much prefer the budget proposed by Eamonn Butler over at the Adam Smith Institute.