Monday, 12 October 2009

The wonderful Sell-Off government

The government have announced they are selling off assets to gain £16 billion pounds "in an effort to reduce the growing budget deficit". Wonderful, wonderful idea. Oh, did I forget to say the man is a total idiot (Gordon Brown). Now I do not have a degree in economics or a related subject and only know a 'pub quiz' amount about governments and how they work but I again feel I have to spell out to these people the folly of this idea. It is this government who has been overspending for the past 15 years. Why make some terrible gesture like it is the "economy's fault" that this has happened. Anyway, down to details.
1) The amount to be raised is small pickings compared to the actual deficit.
2) The obvious answer when outgoings minus income is positive is to reduce your outgoings or to increase recurring income (or both). Raising cash is VERY short-term and does absolutely nothing to fix the underlying deficit. If you borrowed money because your gran was about to die and leave you something then it might make sense but why raise cash just for the sake of it?
3) Selling assets if they are not required is surely something you should do anyway? If you have a spare town hall somewhere, why not sell it and then you do not need to maintain it.
4) If you sell something like the Dartford crossing, you get cash into government but of course the travelling public will pay for it - the cost to run the bridge will not go down so add in some profit for a private company and q.e.d. the charge will go up. You might as well put tax up on fuel and sting everybody!
5) They sold gold before and it bought them nothing.

They haven't learned anything. They are robbing the country and not improving, I like the way one BBC viewer sais, "he has sold the family gold and is now selling the silver". Why does it take 15 years to realise you can't spend more than you have? Are they really that incompetent? This is really, really, really basic. Are they telling us to save, not borrow and then have a deficit of how ever many billions? That is a deficit, that means borrowing money (which incurs interest) because you are spending more than you earn. Why can't the queen invoke some ancient power to dissolve government and have done with it?

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