Wednesday, May 06, 2009

Gordon Brown has destroyed my Retirement

So here is a way out of the mammoth debt spiral that Gordon has now lumbered us with after 10 years of his being in charge at the Exchequer and 2 years of being a Prime Minister. What we'll do is make everyone work longer and get more out of them.

A report from the NIESR makes scary reading about we will need to do to recover from the debts this Government has landed us with.

The report says

The NIESR predicted that the economy was likely to shrink by 4.3 per cent this year, much more sharply than the 3.5 per cent fall predicted by Alistair Darling, the Chancellor, in the Budget last month. Neither can any forecaster rule out the possibility that Britain faces a funding crisis in the coming years, when investors might refuse to buy government debt. Mr Barrell said any plans to raise the retirement age would have to wait until 2013, when rising unemployment should have passed, after which the Government could gradually increase the age to 70.

For each extra year worked, the budget deficit would be reduced by 1 per cent of gross domestic product, NIESR calculated.

The institute also said the Bank of England's attempt to stimulate the economy by spending billions of pounds of newly created money on government debt was misguided and would fail.

Martin Weale, the NIESR's director, said the focus of the policy, known as quantitative easing, should have been on buying private sector debt to help companies that were finding it difficult to gain access to finance.

"The policy of quantitative easing is completely misapplied," he said.

"It is likely to be much like the VAT reduction. It has had some impact but one won't be able to see any clear effect, and it therefore runs the risk of becoming a policy failure. The Bank should have been intervening in the private sector debt market."

George Osborne,, the shadow chancellor, said the report
"graphically illustrates the shocking scale of Gordon Brown's debt crisis"

He added: "The Prime Minister didn't fix the roof when the sun was shining and now we will all be paying the price for his mistakes for a generation.

"Gordon Brown thinks he can fool the British people by pushing all the difficult decisions until after the election and covering up the mess in the nation's finances with optimistic growth forecasts.

"Instead we need real spending restraint now and action to get to grips with our national debt once the recovery is under way."

So we either work for longer, of course you'll need a job to do this and with 3 million likely to be unemployed in 2010 this may be a bit tricky, or we pay huge amounts of extra tax after Labour have been thrown out of power.

This will be yet another generation wasted to pay for the profligacy of wasted years of Labour's corrupt governance.

What a wonderful Legacy for Blair and Brown to reflect on in their retirement, let us only hope that Gordon retires before he is 70!

Britons face working until 70 to help bring public debt under control


James Burdett said...

Also within that report was an alternative to raising the retirement age. They could increase basic rate income tax to 35p in the pound, in fact they would have to increase it to 28p in the pound even with the increase in retirment age.

Only one lesson to draw really, we are comprehensively screwed!

Noddy said...

Hee Hee!

Fitaloon said...

Was That hee hee to our pensions or hee hee to higher taxes. Independence or Emmigration look like the only routes with Zombie Brown in charge.