Sunday, September 21, 2008

Gordon Brown's solution? More unfunded socialism

Yes, facing record budget deficits, economic recession, growing unemployment and inflation, what does Gordon Brown do for the UK? Promises MORE government spending, MORE state dependency and says nothing about what it will cost future generations.

In an exclusive interview with the Sunday Telegraph he calls for extending subsidies for nursery care to two year olds. He says it is about increasing social mobility, something he effectively subsidised by pump priming the property market for several years and which is now reaping the opposite effect. He wants nursery care for two years old to allow mothers to return to work earlier, not considering that it may be better for children to be with their mothers at that time, and more importantly ignoring that families may be better off having more time with their children if they didn't have to have both parents working with 20-40% of their income going on tax.

You see proposals like this show Brown remains wedded to old Labour solutions - more government, more dependency and while he claims it may save a family £1500 a year, it will cost more than that for taxpayers, because of the deadweight cost of bureaucracy involved. He can only afford it by borrowing more, meaning taxes for future generations will be higher.

He talks of irresponsible financial markets, but is willing to spend another £1 billion per annum of money that he has to borrow. Financial wizard? Hardly.

He's wary of more regulation for the City, because he knows that the financial sector has bankrolled the UK economy, and so much of the taxes he depends on. However he has nothing new to offer - he wont cut spending, wont cut taxes and wont admit that the property and mortgage bubble he encouraged and allowed on his watch was partly his fault.

The thing is, whilst some Labour MPs want him gone they have nothing new either. They can only swing to the left and frighten investors, donors and middle class English voters like they did in the 1980s. I am doubtful that he will be rolled yet. It is two years till the next UK elections, he is a patient man, he spent many years in the shadow of Tony Blair awaiting his turn - he's not going to give up without a fight, even if it means stealing from future generations to bribe current ones.

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