ED BALLS A FOOD IN FOOLS CLOTHING – I’ve never understood the mentality of robbing Peter to pay Paul; or in simple terms to borrow money in order to repay a debt.
There are hundreds of thousands of people across the UK who are heavily in debt and as new offers of credit cards gets pushed through the letterbox with lower interest rates (for a time at least) it results in the temptation to simply move the debt around and indeed accumulate more of it.
The British economy is pretty much in the same mess in that each year the Chancellor is forced to borrow more money in order to keep up with growing public spending.
Recently the Shadow Chancellor Ed Balls fired shots across the bow of the coalition Government stating that current economic policy would drive Britain further into debt, increase unemployment and ultimately ruin Britain.
Ed Balls wasn’t alone in this assumption for he had sidekick economists David Blanchflower to back him up declaring Britain would have five million unemployed and with it crime rates rising beyond measurable control if George Osborne’s economic policies weren’t readdressed.
So what has happened and where do we stand now?
Since Mr. Osborne became Chancellor he has managed to implement economic policies that have in fact reduced unemployment by a little over a million people.
A large part of those going back to work can be attributed to the number of welfare reforms that have been employed and whilst this was a risky undertaking, due to the perception that welfare cuts will always make a sitting Government unpopular, it has produced greater employment and opened the public’s eyes to the realisation that welfare doesn’t help the poor but rather suppresses them further and increases crime within poorer communities.
There has been a drop in crime as a result of more people going back to work and certainly the taxpayer will see relief from the reduction of spending but it’s not going to happen overnight.
If you want to fully realise just how damaging welfare is then look closely at the image above; note the cost of borrowing in order to sustain the welfare system; that £48.20 billion is just the debt interest, in other words that’s what it costs the taxpayer in interest on the money borrowed to sustain the welfare system. Do you still think a welfare system is good for Britain?
Welfare was originally designed as a pathway to employment, a way of helping people temporarily whilst they got back on their feet and found gainful employment.
In modern times we now view welfare as an entitlement and therefore it has grown out of all proportion; it is no longer a temporary measure but now a lifestyle choice and it’s one that is going to bankrupt Britain if we do not concisely address the issue.
The danger here is that Ed Miliband and Ed Balls are fools in that they sincerely believe that Britain would be far better off with a deep rooted socialist system (ultimately ran by the unions) similar to France.
We only need take a glimpse at the French economy to understand how President Hollande has plunged France into an economic and social crisis and frankly only a fool would want to expose Britain to the same fate.
Unfortunately whilst Ed Miliband is the face of the Labour Party he is not the one controlling it; the true master or whipping boy if you like is that of Unite’s Union leader Len (Lensky) McCluskey and anyone who remembers the 1960s and 1970s will testify how the Unions finally destroyed industry and killed off almost all industrial and innovative prospects.
It was also the Labour Party, under James Callaghan, who bankrupted Britain in 1976 and was forced to go cap in hand to the International Monetary Fund (IMF) for a bail out.
It appears that Ed Miliband and Ed Balls are not aware of Mr. Callaghan’s famous speech on the issues of robbing Peter to pay Paul.
“We used to think that you could spend your way out of a recession and increase employment by boosting government spending… I tell you that this option no longer exists; and so far as it ever did exist, it only worked on each occasion by injecting a bigger dose of inflation into the economy, followed by a higher level of unemployment as the next step.” James Callaghan’s, British Prime Minister, Labour Party, 1976.
It is obvious that Mr. Callaghan learned a very valuable economic lesson; a lesson that appears to be overlooked by Ed Miliband and Ed Balls. Someone ought to tell the comic duo that if you can’t learn from your mistakes such not only makes you appear foolish but also a clear danger to society if holding high office.
Last year the IMF did accuse Mr. Osborne of ‘playing with fire’ due to his views on turning the economy around but this statement has since been rescinded and the IMF have conceded that Britain’s prospects are indeed looking much brighter.
It is unquestionable that Ed Miliband and Ed Balls have one common goal and that is to increase public spending and increase taxation (that’s taxing the rich out of existence in the same way as France) all of which results in borrowing more money.
It has to be acknowledged that Britain’s debt now stands close to £1.4 trillion and if Britain is to reduce the deficit bring the economy back into the black then the last thing Britain needs is a socialist government that is prepared to make the same mistakes James Callaghan and his Labour Party did in the 1970s.
I for one dread to think that Ed Balls would be given the opportunity by the British public to take control of Britain’s Treasury for such a move would almost certainly drive Britain along the same path as Greece, Spain, Italy and Portugal and we all know how these countries are now fairing under the regime of spend now, pay later… and pay they have.