We effectively have four Political Parties, not one of them has shown any signs of leadership that could bring the UK economy out of it's malaise. There is a singular lack of ideas, they trade in platitudes and half truths. They pander to the media … just generally we have to say "They are not fit for purpose!"
Ideas man George Osborne.
Yes the UK Government Deficit is too high. Government expenditure now represents more than 40% of the total economy. What has he prescribed?
We will cut expenditure.
Yes that is part of the solution, but only a part there are two sides to the deficit, The other side is tax or Government Revenue.
We can't tax more as that reduces demand taking cash out of the hands of the consumer.
If you cared to analyse the balance sheets of a few of the large corporations, you will find that they are awash with cash and that position has been building since 2009! Why don't you take some of that cash and put it in the hands of the consumer!
Large Corporations by failing to increase their dividends and putting the cash back in the hands of “consumers” or shareholders, or investing that cash in expanded output, are acting as the main dampener to the prospects of growth in the UK and in fact the world economy!
So use tax and take it away from them.
We have the ludicrous situation of Amazon. They pay 2.4 million in Corporate tax and we give them 2.5 million as a subsidy to expand their operations. The net effect of their activities has been to close down bookshop after bookshop on the high street while they move the cash from their profits out of the UK economy.
Why oh why?
The Liberal Democrats
Ideas man Vince Cable
While you were good at pointing out the reasons for the UK getting into a mess in 2008/2009, there has been nothing coming from you.
I have heard you bleating on about the failure of Banks to make loans easily available to small and medium sized business. Have you forgotten all those wise things you had to say about the role irresponsible lending had in creating the crisis in the first place?
You offer us a development bank that will subsidise and take part of the risks for Bank lending to the SME sector.
Good grief haven't you learnt yet?
A business venture that is only viable on near zero interest rates, is not actually viable at all.
An entrepreneur who is not prepared to put his personal assets up as security for borrowings, does not really believe his business is going to fly … he is only taking a bet as long as other people take the risk!
What are you thinking of?
Joe Public has had enough of the taxpayer having to pick up the tab for business failures!
I hear you talk about business rates and how unfairly they impact on businesses in the high street. Yes that may be true.
But, you know we are not collecting enough tax!
However, you shuffle the system and play with valuations, it is going to be unfair to some.
It is the Amazons and Big Chains that are killing the high street, not the business rates!
It is the lack of freely available parking that is hurting the high street.
Why shop on the high street when I am going to have to lug my purchases half a mile or so, while I could simply go to a Tesco or Currys and wheel my trolley overladen with purchases directly to my car in the parking lot!
There is so much that you could be doing to fix the business environment.
The Labour Party.
Ideas man none!
Or perhaps we should say which of the Eds
I was not dropping my “H” cause I don't think they have heads either!
Ed Balls you were a balls-up in government and are still a balls-up.
You tell us that you will also be reducing the deficit but at the same time call for bigger government borrowing, you are going to revive the economy through public works or infra structure development.
What are these projects you are going to get under way at the drop of a hat?
How are you going to reduce the deficit ?
Gordon Brown's way?
Where as long as he was rolling 90 day bills it was overdraft and not debt?
Grow up … it is little wonder that our 2011 deficit shows on our National Accounts as £128 billion and then by way of note and reconciliation we tell that if we followed EU rules for drawing up National Accounts it would emerge as £140 billion?
Or do you intend using his other idea … Quantitative Easing?
In the hopes that you can write off that debt one day?
What will the Bank of England call it when they write it off?
A Bad Debt?
An open acknowledgement that the people of the UK will not stand behind Government Debt!
Do you know that if the Bank of England wrote that off, and consolidated RBS, for which they on behalf of the Government are controlling shareholder, the Bank of England on balance sheet would be insolvent?
That is still an issue that needs to be solved!
You tell us you are going to reduce the deficit through growth.
Do you know how much growth is required to eliminate the deficit?
Current Government expenditure is 41.5% of GDP. Current Government Tax revenues are 33% of GDP.
A simple sum will tell you that if you assume that growth is going to result in the same increase in government revenue (which implies wages will increase by the same proportion) it requires growth of 25%.
My dear people that is only possible through inflation!
Our so called strong growth period under Gordon Brown only averaged 3%!
So tell us, dear people, what are you going to do?
I don't think there are any people yet!
So Mr Farage, our problems all relate to the EU?
You are going to take us out?
Here are a few home truths about our relationship with the EU.
Our Banks have a net indebtedness to the Euro countries approaching £500 billion.
Which, quiet frankly, we cannot repay!
We owe Spain £200 billion … their banks are in trouble do you think they would not call on that money if we were not a member of the EU … it would go a long way to re-capitalising their banks and assist in solving some of their problems!
Do you know that we are even in Debt to Ireland to the tune of about 10 billion.
These figures are after deducting what they owe us.
You tell us that the EU is telling us what to do, and effectively trying to take all our powers away.
I am very interested to know which judge in the UK would have allowed the deportation of Abu Qatada to Jordon, without the EU Bill of Human rights being in existence. I would really be surprised if you can find one, as virtually all those rights were long enshrined on what we called common law, whether you understand it or not, the British are decent and fair minded people.
It is easy to play up to the media.
Immigration is always an issue when the economy is in a downward phase.
You tell us you will only allow in qualified people who have something to offer the UK.
Tell me … who picks all our strawberries?
Or … harvests our vegetable crops?
You say that if we leave the EU our trading status with the EU will not change.
That would really surprise me.
Firstly I would expect that they would ask us to pay for our imports in hard currency, and would not simply allow our indebtedness to them grow!
Do you think we would still fabricate the wings for Airbus?
Would they allow our banks freedom to trade in Euro instruments … they don't for other countries without branches having EU based banking licences and paying their taxes in the EU. The advantage City of London has against Hong Kong, Shanghai and other big financial centres is as a gateway into the Euro zone, Would it keep that status?
I doubt it!
Mr Farage, Mr Farage … join the real world!