The Only Way Out of This Mess

Time to read: or £81,240 every minute, and counting

The irrelevance of the “more taxes / less cuts” way out of recession was typified last week by  Rachel Reeves, Labour’s Shadow Chief Secretary to the Treasury. She said that the increased taxes from the planned January 2013 3p-a-litre rise in fuel duty should be stopped, and the money raised instead by clamping down on known tax avoidance loopholes.

Thanks for that one Rachel – in fact, the £650m to be raised, either way, would actually pay for just under five days of the interest the UK Government is paying on its £1.2 Trillion (thousand million) debt (correct at the time of writing, it’s rising at a rate of £117M every day, or £1,354 every second.

Isn’t that rather frightening? And also very interesting, as it should, because that figure relates only to the interest we are having to pay – it doesn’t even begin to touch the body of the debt itself. The fact is that we can raise all the company and wealth taxes as we wish, there will never be enough money to clear it – unless of course we simply closed down all companies, and made the richest 100,000 people homeless. And I am not so sure that would work either, as we would have far more unemployed to support.

OK, let’s turn to cuts. As there is actually no such thing as Government money – only our money – let’s start to reduce that £700bn of annual UK public expenditure. When my daughter comes home from school and I ask “what did you do at school today” she replies, “nothing.” So, let’s get rid of all schools, indeed, all education in the UK. that should help. Yes, £92BN. Now, just another 1.110TR to go. OK, let’s stop all healthcare and close down all hospitals – that’s another £121.3BN. Excellent, we are down to £1TN. Now…

The bottom line fact is that we as a United Kingdom will never tax or cut our way out of debt – and neither will any other country in the world – ever.

And that is one simple fact that politicians of every political colour and creed have simply not grasped, or if they have, they have forgotten to mention it to us, even in passing, as they put politics and spin, before people.

A strong, successful and sustainable economy with thriving private and public sectors relies on an interdependency existing between them. We can’t have one without the other, both sectors can learn a great deal from each other, and such mutuality of benefit is to be found only where we all adopt an entrepreneurial, leadership and opportunity focused agenda.

Why should entrepreneurs be the exclusive domain of The Dragon’s Den? Every “small to medium enterprise” (sic) is led by an entrepreneur. This is not one way forward; it is the only way forward.

And there are many people in schools, hospitals and charities who are screaming out for more freedom, more autonomy, to be more “entrepreneurial.”

With my love, taxes and economic cuts to you all

David
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9 Comments

  • Murtaza

    Thanks for that, David. It took me about £74,470 to read that excellent post.

    Here’s a thought: why don’t we replace the government debt with our own money. Then, the tax money that people pay will come back to them, they will have more money to spend and save, and will therefore be more inclined to spend and save. I am no economist, but I fail to understand how ‘stimulus packages’ that aren’t stimulating the spender to spend – only inviting him/her to go deeper into debt – is supposed to rescue any country or people!

    Have a great week!

  • Michael Sumner

    Great post David. Thought provoking as ever.

  • Harry Peake

    Money matters are very frightening to me!

  • Mark Hammer

    Baffling people with science is what the Government do.
    I prefer to talk about real issues which is actually what they have no intention of doing.
    They are trying to kill the entrepreneurial spirit in this country by raising taxes and taking off the people who are actually trying to do their bit to boost the economy.
    It stinks, really.

  • Paul Charlton

    I’m not sure the Government had a choice than to do what they did. We all have to take the cuts and live with them.

  • Francis Greve

    You dont need to go on dragons Den to be an entrepreneur or vice versa!

  • Maureen

    Dragons Den is the tip of the iceberg. There are all sorts of entrepreneurs who never get on a programme like that who have twice the ambition and twice then the number of ideas and yet they will make it on their own without help.
    That is a true entrepreneur.

  • Rakesh Noah

    Those on Dragons Den aren’t that bright anyway to be honest.
    Some of them have no business sense at all.
    It is a myth that they all know what they are doing.

  • Robert English

    There are many charities etc who want to be more entrepreneurial.
    I know of at least three…it won’t happen under this Government though.

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