Two things happened back-to-back last week which together make both events memorable for me. The first was news of singer Michael Jackson’s tragic death, an event that will always be a beacon for the title of this post, which is the second item noticed on the following day.
It simply announces that all the income the UK Government receives from personal income tax throughout the whole year won’t be enough to cover the cost of the social security benefits.
Its stark, pretty bland and will doubtless be lost amidst the news and follow-up reports surrounding Michael’s death. But let’s consider the full impact for a moment because the reality will remain – that income tax receipts won’t pay for everything else. Like
The National Health Service
Education
Defence
The Road Networks
Public Order (Police, Courts)
This is a staggering!
(OK. I do appreciate the Government receives sizeable income from other sources like National Insurance and it does charge us crippling amounts for a drink and on fuel, etc etc).
Unfortunately, basic financial economics are as intractible now as they ever were. No one put it better than Mr Micawber who said, “Income sixpence, expenditure fivepence, happiness. Income sixpence, expenditure sevenpence, misery.” – The same is as true today as it was in Charles Dickens’ time.
For me the title shows, more than anything else, that the UK recession is very likely to be far lengthier and harder than was at first suggested to us by a Government that simply wanted us not to see it as the fundamental flaw which it no doubt is, but rather as a temporary and unfortunate blip on the country’s economic horizon to be viewed simply as an ‘economic downturn’.
And another thing:
Throughout the decade of Tony Blair’s Premiership at Number 10 Downing Street, we regularly heard how the nation’s treasury was in safe hands, that Chancellor Gordon Brown was considered one of its most capable Chancellors ever. The same Gordon Brown who is now in the driving seat at ‘Number 10′ at the Head of the Government.
It makes you wonder how bad the other guys were……..
