Tag Archives: Budget Deficit

LABOUR/SNP WIN – THE WHOLE OF THE UK LOSES

“If you put a Labour/SNP government in charge of the Sahara Desert, in 5 years there’d be a shortage of sand”   UK version of Milton Friedman’s famous observation.

“History reminds us over and over again, there is no new way to go broke. It is always too much debt. My conclusion is we are either slow learners or have long term memory issues”   Vern Gowdie

There is no doubt that Ed Miliband will team up with Nicola Sturgeon of the Scottish National Party (SNP) in order to regain control of the UK and complete the disastrous job he started with Gordon Brown and Tony Blair. A quick comparison of Labour and SNP policies clearly shows how a SNP dominated labour government would work.

ECONOMIC POLICY

Labour – no additional borrowing or new spending.  SNP – increase spending.  Lab/SNP Government – increased spending, increased borrowing, inevitable financial crisis.

IMMIGRATION

Labour – more border control staff.  SNP – support immigration that benefits Scotland.   Lab/SNP Government – increased immigration and increased social and infrastructure problems.

TAXATION

Labour – increase income tax and tax on high value properties plus encourage financially independent foreign nationals to leave the UK with increased “non-dom” taxation.   SNP – ditto. Lab/SNP Government – higher taxation, increased unemployment, exodus of high value contributors to the nation’s finances.

DEFENCE

Labour – a “minimum, credible, independent nuclear deterrent”.  SNP – oppose a renewal of the nuclear deterrent and require a larger proportion of defence procurement to be spent in Scotland. Lab/SNP Government – zero action on upgrading or maintaining the UK’s defences in an increasingly hostile world.

THE CONSTITUTION

Labour – a “Home Rule Bill for Scotland”.  SNP – Independence for Scotland.  Lab/SNP Government – break up of the UK.

Greece like Britain is a beautiful country. However, pursuing policies akin to those advocated by Labour/SNP has left Greece in ruins. A Labour/SNP government will bring  financial ruin to this country and will be a vote winner for the end of the United Kingdom.

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LABOUR’S ONE NATION – IT’S HOLLANDE’S FRANCE

“Every election is a sort of advance sale of stolen goods” H.L.Mencken

“However beautiful the strategy, you should occasionally look at the results” Winston Churchill

Labour’s key economic thinking, as advocated by Messrs. Miliband and Balls bears a striking resemblance to the policies of France’s socialist president, Francois Hollande. The president came to power in 2012 with a programme for more regulation, increased public spending, punitive taxation and a worrying disregard of the growing budget deficit.

These policies are now widely blamed for France’s woeful growth performance, the rapid worsening of public finances, unemployment rising above 10 per cent and a serious increase in social and racial tension. “This president’s policies have been terrible for French growth” (Robin Riverton, adviser to Aeroports de Paris) and Hollande’s approval rating has sunk to 13 per cent, the lowest for any president in more than five decades.

Labour’s high public spending, high borrowing and high taxation plans coupled with the unquestioning adoption of increased regulation (from Brussels and Westminster) are virtually identical to President Hollande’s. And the consequences will be the same. The successful recovery of the UK economy will stop in its tracks, unemployment will grow rapidly, public finances will deteriorate, foreign investment will halt, talented entrepreneurs will emigrate (as happened in France) and no doubt the future economic and social agenda of the UK will then be determined by the EU and the International Monetary Fund.

Adopting the catastrophic policies inflicted on France by President Hollande and now advocated by Ed Miliband is definitely not a vote winner for common sense.

LABOUR AND THE ECONOMY – IT’S A WORRY

“We used to think you could spend your way out of recession and increase employment by boosting government spending. I can tell you that option no longer exists. And so far as it ever did exist, it only worked on each occasion by injecting a bigger dose of inflation into the economy, followed by a higher level of unemployment as the next step.”  Jim Callaghan – Labour Prime Minister 1976-1979

Yes, these are the words of a Labour Prime Minister but the party and a large section of the media don’t seem to rate Jim Callaghan’s words of wisdom. In fact if the recent track record of the Labour Party is taken as a benchmark, it doesn’t bode well for a future Miliband/Balls government’s impact on the British economy, living standards and mandatory austerity.

1964-1970 Harold Wilson’s Labour government – Sterling collapses, International Monetary Fund called in – pre-election promises jettisoned and emergency austerity measures inflicted on the electorate.

1974-1979 Wilson then Jim Callaghan’s Labour government – Treasury predicts black hole in public finances, International Monetary Fund called in – pre-election promises jettisoned and emergency austerity measures inflicted on the electorate.

1997-2010 Blair and Brown Labour government – after announcing “no more boom and bust”, the government went on to cripple the country’s finances and to create a record breaking budget deficit (comment from the departing Treasury Secretary after Labour lost the election – “I’m afraid to tell you there’s no money left”), followed by, you guessed it, more austerity measures.

On recent form, it looks like a general election win by labour would be a vote winner for austerity.