Osborne Biggest Loser in Budget

Osborne’s budget has gone down like a bucket of sick on the front-pages this morning. As long as we have flat-lining growth and a failure of political will to tackle spending, all fiscally-neutral budgets will be like this, identifiable ‘losers’ will out-number identifiable ‘winners’. The losers this time are those who were prudent enough to save for their retirement. The so-called lucky generation of baby boomers who had a working life in a long term growing economy and an overly generous welfare state which has now impoverished their children and grand-children. Some might spin this as a bit of inter-generational payback, others as an unjust punishment of those who saved for their retirement. Pensioners have a propensity to be voters…

Osborne is spending more than Brown, borrowing more than Brown and taxing more than Brown. The official numbers revealed yesterday show that spending is still rising in real terms, there is no hope of for an “expansionary fiscal contraction” if there is no fiscal contracti0n. The national debt is still rising. The coalition government’s self-defined primary mission, to close the deficit by the next election, is on course for failure. As long as this obsession with fiscal neutrality and timidity towards cutting spending continues the tax burden will not be reduced, the debt will not be reduced and growth will flat-line. Fiscally neutrality is just another phrase for tinkering with the tax burden.

The bond markets already know the government is going to miss the deficit target. All the fast growing economies in Asia and the Americas have lower tax economies than the UK and Europe. A dash for growth stimulated by across the board tax cuts will not as Osborne fears be punished by the bond markets, that is a fundamental mis-reading of bond market mentality. Osborne knows bond markets think long term, that is why the Treasury is contemplating issuing 100 year bonds. Bond traders understand that broad tax cuts are a real stimulus that will lead to a more dynamic growing economy which will reap more tax revenues long term. Why are we waiting?



Tip offs: 0709 284 0531
team@Order-order.com

Quote of the Day

Out of the bubble prole Andy Burnham tells Mumsnet

“I’m afraid I’m going to depress you all by saying that I don’t have a sweet tooth and don’t eat biscuits… Give me a beer and chips and gravy any day.”

Top Posts This Week

Guidogram: Sign up

Subscribe to the most succinct 7 days a week daily email read by thousands of Westminster insiders.

Facebook

ENERGY MINISTER TOTTY WATCH: LAS VEGAS EDITION ENERGY MINISTER TOTTY WATCH: LAS VEGAS EDITION
DIANE ABBOTT FORGETS SHE DIDN’T THINK CORBYN COULD WIN DIANE ABBOTT FORGETS SHE DIDN’T THINK CORBYN COULD WIN
NATWEST’S ONLINE BANKING CRASHES ON PAYDAY NATWEST’S ONLINE BANKING CRASHES ON PAYDAY
OWEN JONES: LIE-RA OWEN JONES: LIE-RA
GMB UNION SUE UBER GMB UNION SUE UBER
Who Will Be UKIP’s Mayoral Candidate? Who Will Be UKIP’s Mayoral Candidate?

Meanwhile, in Venezuela… Meanwhile, in Venezuela…
TWITTER EMPLOYEES JUMP FROM SINKING SHIP TWITTER EMPLOYEES JUMP FROM SINKING SHIP
Times Trolls Burnham Times Trolls Burnham
CHAMPAGNE SOCIALISTS BACK CORBYN CHAMPAGNE SOCIALISTS BACK CORBYN
SINN FEIN SHOULD “TAKE INSPIRATION” FROM ARMED UPRISING SINN FEIN SHOULD “TAKE INSPIRATION” FROM ARMED UPRISING
ALL CHANGE AT GREEN PARTY HQ ALL CHANGE AT GREEN PARTY HQ
I Can’t Believe He’s Not Tory! I Can’t Believe He’s Not Tory!
UBER DESTROYING RACIST TAXI INDUSTRY UBER DESTROYING RACIST TAXI INDUSTRY
Could Labour Fall Apart Under Corbyn? Could Labour Fall Apart Under Corbyn?
Hilarious Prankster Hilarious Prankster
GREENPEACE LIVID GREENPEACE LIVID
Did Labour Leadership Candidates Smoke Dope? Did Labour Leadership Candidates Smoke Dope?
Another Andy Flip Flop Another Andy Flip Flop
Clegg Whores Himself Out Clegg Whores Himself Out
RETURN OF THE FRACKERS, CUADRILLA TO APPEAL RETURN OF THE FRACKERS, CUADRILLA TO APPEAL
FLASHBACK: TORY WHIP ON SCANDAL INVOLVING “SMALL BOYS” FLASHBACK: TORY WHIP ON SCANDAL INVOLVING “SMALL BOYS”
“Owen Jones is the 1%” “Owen Jones is the 1%”
Jedward Told to “F**k Off” By Indy Staff Jedward Told to “F**k Off” By Indy Staff
CLIMATE LOBBY DRAFT ARNIE CLIMATE LOBBY DRAFT ARNIE
MOD FORCED TO FIGHT RUSSIAN AGGRESSION… WITH TWEETDECK MOD FORCED TO FIGHT RUSSIAN AGGRESSION… WITH TWEETDECK
Mental Marxists: Tories Will Gas the Poor Mental Marxists: Tories Will Gas the Poor
MONEYBAGS BURNHAM TRAILS DESPITE SIX FIGURE FUNDING BONANZA MONEYBAGS BURNHAM TRAILS DESPITE SIX FIGURE FUNDING BONANZA
ROLL CALL OF LABOUR ‘MORONS’ ROLL CALL OF LABOUR ‘MORONS’