Bzzzzt! wrong Jackie!

Not even the most extreme anti-state slasher thinks the books can be balanced only by expenditure reductions.

Lots of us do actually. So, wrong assumption, do not pass go, do not collect £200.

The rest of your piece is simply nonsense precisely because you make that incorrect assumption.

Here\’s a plan to warm the hearts of the most Keynesian amongst us.

Assume that Keynes is right, that cutting expenditure now would lead to further economic downturn.

Well, of course, that\’s only true of spending that occurs inside our own economy and triggers the multipliers. Tax money that we ship abroad does not have this effect.

Great, so, we can cut the £1o billion on DfID without any effect on the domestic economy. In fact, if we didn\’t send that abroad but spent it at home then we\’d have the multiplier would we not?

Similarly the £16 billion (or perhaps £6 billion nett) that we ship off to the EU.

So, there we go, huge spending cuts that won\’t collapse the UK economy, rather, will improve it.

No, not an entirely serious suggestion (except about the EU) but it does show that there are many more options than just sticking up taxes.

6 thoughts on “Bzzzzt! wrong Jackie!”

  1. Tim, you need to count far more of the EU “donation” than £ 6 billion, cuz the money that comes back will be spent of things they decide, which might just not be beneficial to us.

    Also, for those funds that do actually come back, don’t we have to “match” them with retained money – ie the pittance we control, so even that is spent at their behest ?

    Alan Douglas

  2. According to the IFS our system is about as progressive s it can get . That means further revenues have to be collected form the middling and that includes almost everyone.
    I do not believe it is possible to make any serious impact through politically feasible tax rises . Benefits that are universal such a as child benefit will be means tested I think which will act as a tax on ordinary families who will get no corresponding tax reduction and carry the weight of rich and poor like pack mules already

  3. Why not be serious about completely defunding DfID? If, like me, you believe that foreign aid other than direct disaster relief has a deleterious effect on the recipients as well as being costly to the UK taxpayer, then you should be entirely on-board with scrapping it. The fact it would hamstring a lot of revolting Clare Short wannabes is just icing on the cake.

  4. Oh, and child benefit should be scrapped across the board. It’s a perverse incentive and extremely unfair on the childless.

  5. I reckon the DfID budget should be completely defunded. And that entire administration should be scrapped.

    Rationale? Easy. We have no money.

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