'Vote manure' - a great phase used by an innocent shopper asked yesterday as reported by the BBC. So was the pre-budget a case of it?
Well - here's a few questions to decide...........
(1) What would be more useful to consumers right now? Would it be:
(a) To introduce an aimless 2.5% VAT reduction across everywhere with all the inherent costs of associated with changing it (and thus lost productivity) and providing questionable incentive to spend more - would you now buy a £500 plasma HD TV knowing that it costs about £10 less (reduction is actually only 2.13% of total price)? And particularly if you're not sure you have a job in future?
(b) or reduce current VAT on gas/electric/water from current 5% to zero thus helping every consumer in the country by effectively giving cash for alternate spend? And further tax cuts to the same cost of £14billion
For those of you not sure it's (b) but for an intellectually and financially bankrupt government which hasn't got a clue it's (a).
(2) What would be more effective in retaining jobs and helping SMEs (smaller businesses up to 250 employees):
(a) Putting National Insurance tax up in a year's time and doing nothing now, risking even greater harm to job creation?
(b) Reducing National Insurance tax now - both employees and employers (remember the double whammy effect), so that both companies and individuals both gain with extra cash
For those of you not sure it's (b) but for an intellectually and financially bankrupt government which hasn't got a clue it's (a).
(3) What would further help resilient SMEs to survive:
(a) Provide useless finance guarantee facilities (because lending isn't the issue it's trading) so that struggling companies with problem business models can struggle a bit longer to the detriment of everybody else, or
(b) Provide trade credit guarantees nationally and mandate that invoices are paid within 14 days of due date for all, thus ensuring trading cashflows and thus not forcing companies to call on more borrowing (which can't be granted anyway) - a double win.
For those of you not sure it's (b) but for an intellectually and financially bankrupt government which hasn't got a clue it's (a).
(Remember SMEs employ around 13 million people and contribute over half the nation's GDP and of course contribute to government tax coffers).
(4) To help stimulate the economy to some degree do you:
(a) Once again, introduce an aimless 2.5% VAT reduction across everywhere with all the inherent costs of associated with changing it (and thus lost productivity) as in (1) above, or
(b) reduce current income tax by 4p or raise personal thresholds to the same degree which is the same cost as (a) and thereby putting cash in consumer pockets?
For those of you not sure it's (b) but for an intellectually and financially bankrupt government which hasn't got a clue it's (a).
(5) If you advised an individual who has not been able to budget for the last two years even in the good times, he/she has maxxed out on credit cards and now cannot afford the mortgage, would you say the best course of action would be:
(a) to borrow even more he/she can't afford at higher rates, and/or borrow from whoever you can in the neighbourhood, relying on the Wizard of Oz "it'll be better tomorrow" philosophy and potential bankruptcy, or
(b) Look at you budget, make some appropriate cuts to your standard of living and start paying back the borrowed amount, taking a little pain in the short term but which will ultimately pay dividends in future
For those of you not sure it's (b) but for an intellectually and financially bankrupt government which hasn't got a clue it's (a).
(6) All of the chosen wrong options are done on the basis of a quick recovery in 2010. Given the fact that the Government/Treasury in ten years has failed to get its forecasts right once - what is the back-up plan if they are wrong again?
(7) A TRILLION - that's £1,000,000,000,000 (most calculators don't have enough room). That's how much the country will owe in 2012-13 rising to 1,084,000,000,000 in 2014 where it will supposedly peak?!
A trillion is roughly equivalent to everybody in the country (c. 60million) owing £17,000 EACH on behalf of government. (That's after all taxes raised). And it's getting dearer to service because as a nation we are increasing our risk of default (to insure against UK government bonds now costs £9,000 per million as against £1,000 per million back in May - 900% increase). I was at school the last time we went cap in hand to the IMF..........
From 1st to 3rd world in one small jump - one giant backward stride for the best nation on earth........what are we doing........?
(8) Finally, as a sign of the times, spotted yesterday was a job advert by a university for the position of 'Lecturer in Poverty Reduction'.
May I suggest that all current cabinet ministers sign up for this course?!
PASS the blog link onto somebody you know............
