Thursday, September 24, 2009

Britain's fiscal emergency: Deflating the state | The Economist

Britain's fiscal emergency: Deflating the state | The Economist

Speaking of the Economist, just off of memory here are some recent predictions they made.

  1. The Iraq War would be relatively easy and produce greater security and should be followed.
  2. George W. Bush in his last year as President could produce a Middle East peace agreement.
  3. The Credit Crunch would improve the global economy even in the short term.
  4. California in 2006 was about to experience another one of its economic miracles.
And that is just from memory.  Frankly if you just listen to a drunk guy in a pub who used to drive a cab you are likely to get better predictions.  Now I still love the graphs, boy they have great graphs, but at some point you have to wonder when will they shut up.

As a long term resident of the UK I would point to one thing, Brown and Blair did not launch a mass of public spending because they simply felt like it.  The UK public service sector was in a state of deep crisis after the last 2 Conservative governments and remains so today.  The NHS has been greatly improved and UK schools, rail, and city infrastructure has been improved but is still in great need.  The UK was unique in the EU for having gone through a period of such radical neglect of its public sector in favor of the private and the states of UK schools makes this very clear.

The UK simply MUST spend more money.  The problem is that the UK, like all neo-liberal states so adored by the Economist, is a dictatorship of a few major business interests.  Raising taxes on the finance sector is out of the question.

So under a new Conservative party headed by a man who was never meant to be PM we will see a B-line push to reduce spending and increase VAT taxes with an effort to reduce inheritence tax.

In the end here is a prediction, Britian along with the United States will remain at the top of debt for a while.  This prediction comes from an Economist who often made very correct predictions: Marx.  Marx noticed that the hallmarks of a Capitalist system are heavy public sector debt and taxes.

And that is the key issue, the current ideological debate is too narrow to really look for answer, and is structured in such a way that is can not question its own assumptions: which are free market.

In the US and UK a question about Capitalism in its present form can not make it to TV or print.  Sure people like I can blog about it but blogging is structured in such a way to prevent debate and discousre.  Everyone just has there own blog mouthing off.  In fact this post is a waste of time and you are as fool to read it as me to write it.

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