Wishy-Washy Politics
Increased inflation expectations, almost zero interest rates, and a weakening dollar. This seems to be a great position to be in for the UK economy, if the Chancellor just made strong and brave decisions, but of course he hasn’t, or perhaps couldn’t, and overall Mr Moneybags showed a lack of common sense.
Unlike the US and Japan, there appeared little evidence of stimulus pledges to help get business moving. thebigword, like many other global companies with their headquarters based in the UK, has continued to grow, possibly because we are dealing with a much wider market. This investment in the past year has contributed to the creation of thousands of jobs, and it is companies like ours who are waiting to see if this budget would continue to help in relation to job creation. Unfortunately, it seems that the Chancellor has accepted that unemployment will continue to grow – with all the social and economic cost involved – and is actually increasing National Insurance, which will have the opposite effect of stimulating employment.
The Chancellor explained that the UK is the sixth biggest exporter of goods and second biggest exporter of services, but there was nothing in this pre-budget to support companies trading overseas. There was vague talk about supporting research and development for science and technology, without any concrete or significant commitment to this.
So what has the Chancellor tried to do? Well, like his competitors in the other two wishy washy parties, he has gone for an easy option, by heavily taxing the people who have the power and money to invest in our economy, thus encouraging these people to either spend time and effort on more tax avoidance measures and in many cases make further plans to quit the UK, looking for greener pastures.
In announcing a tax on bank bonuses he’s made a bow to the public, who have been understandably angry about bankers benefiting from a tax-payers’ bailout. However, since it’s a one-off tax, which potentially can be deferred until May next year, it’s more of a fiscal slap on the wrist than an attempt to stamp out the bank bonus culture. In the meantime, government borrowing is getting ever more stratospheric, ultimately putting the entire economy at risk.
I do believe this Government did a great job at the beginning of the crisis and it was essential they supported the banking system, and good for Gordy at leading the way, but how disappointing to see that he, like the Conservatives and Liberals, have not got the strength of character to deal with the real issues. Instead they are now taking us into this ridiculous cycle (which may be unavoidable if they want to win an election) and that is hit the rich and successful – the rich and successful work who hard at tax avoidance plans and/or leave the country, or get as much money offshore as possible. As a result, companies stop investing, the economy gets even worse, politicians give the rich great tax concessions and a better deal, so they come back and the boom starts again.
I believe it is a real dilemma for the electorate, as I feel we all have a duty to vote, especially with dreadful parties like the BNP on the scene. The only possible vote I could make this time is to go green!
Unlike the US and Japan, there appeared little evidence of stimulus pledges to help get business moving. thebigword, like many other global companies with their headquarters based in the UK, has continued to grow, possibly because we are dealing with a much wider market. This investment in the past year has contributed to the creation of thousands of jobs, and it is companies like ours who are waiting to see if this budget would continue to help in relation to job creation. Unfortunately, it seems that the Chancellor has accepted that unemployment will continue to grow – with all the social and economic cost involved – and is actually increasing National Insurance, which will have the opposite effect of stimulating employment.
The Chancellor explained that the UK is the sixth biggest exporter of goods and second biggest exporter of services, but there was nothing in this pre-budget to support companies trading overseas. There was vague talk about supporting research and development for science and technology, without any concrete or significant commitment to this.
So what has the Chancellor tried to do? Well, like his competitors in the other two wishy washy parties, he has gone for an easy option, by heavily taxing the people who have the power and money to invest in our economy, thus encouraging these people to either spend time and effort on more tax avoidance measures and in many cases make further plans to quit the UK, looking for greener pastures.
In announcing a tax on bank bonuses he’s made a bow to the public, who have been understandably angry about bankers benefiting from a tax-payers’ bailout. However, since it’s a one-off tax, which potentially can be deferred until May next year, it’s more of a fiscal slap on the wrist than an attempt to stamp out the bank bonus culture. In the meantime, government borrowing is getting ever more stratospheric, ultimately putting the entire economy at risk.
I do believe this Government did a great job at the beginning of the crisis and it was essential they supported the banking system, and good for Gordy at leading the way, but how disappointing to see that he, like the Conservatives and Liberals, have not got the strength of character to deal with the real issues. Instead they are now taking us into this ridiculous cycle (which may be unavoidable if they want to win an election) and that is hit the rich and successful – the rich and successful work who hard at tax avoidance plans and/or leave the country, or get as much money offshore as possible. As a result, companies stop investing, the economy gets even worse, politicians give the rich great tax concessions and a better deal, so they come back and the boom starts again.
I believe it is a real dilemma for the electorate, as I feel we all have a duty to vote, especially with dreadful parties like the BNP on the scene. The only possible vote I could make this time is to go green!
