I am no economist, but even I can see that people are going to suffer in the wake of this government’s emergency budget. Measures including, limiting housing benefits and cutting welfare payments were bought in with a mantra that “we are all in this together, and we all need to make sacrifices”. Does anyone else feel a little annoyed with these words coming out of old Georgy boy’s mouth. I am sure if George came across hard times, one of his Bullingdon Club mates would bail him out. We are not all equally in this together; some people are disproportionally suffering, while others are getting away with taking gesture cuts in their cabinet salaries.
It strikes me as economic madness to be cutting money that is going to those who are most likely to spend it. This will only increase the likelihood of the recession double dipping and having a seriously negative affect on people’s standards of living (obviously excluding George). Osborne claims he has thought of this by reducing Corporation Tax and Capital Gains Tax (to stimulate the business sector). With Cameron proudly going to the G8 claiming (to Obama) that other economic power houses (such as Germany) agree with him, you have to wonder who Cameron, Osborne and co believe will be doing the spending that our economic system is so reliant on. It is no good stimulating production if you do not have a market to sell to.
It appears that this budget will bite those who are vulnerable in our society in the short-term, and potentially damage our wider economy in the long-term. In the short-term, the pain is justified through the “we are all in it together” mantra. This is bull coming from the Etonian elite who currently hold power. In the long-term, if I turn out to be wrong (and people do just magically find money to spend), then we have to question how much suffering is justifiable for this government to continue to peddle its economic norm. In a 21st century Britain, we have to agree that certain standards of living are unacceptable for anyone and not let people drop into them.
It must be said, it is not George who will have to decide between his rent and his food bills this week.