THE MYTH THAT AUSTERITY AND WELFARE REFORM PAY OFF NATIONAL DEBT OR BRING DOWN THE NATION'S DEFICIT
We are told that Austerity is needed because of national debt and deficit and this is the reasoning for all the Welfare and Pension reform that has left people cashless, hungry and freezing.
Pension Reform threatens the poor with nil income in old age forever, as well as the end of Pension Credit, SERPs and State Second Pension and any additional pension from contributing to same for new claimants from 2016.
Click here to see if you lose most or all of your state pension
HOW BOTH LEFT AND RIGHT CURRENT MAJOR PARTIES MAKE NATIONAL DEBT AND DEFICIT WORSE
A little party running in England for the European Elections in May 2014, called the English Democrats (good mates with Scottish Nationalist Party) said:
"The Economic RecoveryWe all welcome the recovery that is underway. But why has it taken so long? Why will we still be suffering austerity for many years?
Had the Chancellor in 2010 decided to cut the current expenditure overspend over 5 years whilst maintaining capital expenditure there would have been an outcry. But growth would have been accelerated by at least a year. This means that 2014 would be our third year of significant growth, unemployment would have be much lower, the economy would now be larger than in 2008 and we would not be facing years of austerity.
Gordon Brown failed in his primary duty of maintaining public finances. Chancellors are supposed to borrow money during a recession when tax revenues fall and fail to cover the increase in welfare costs. Then when growth returns they are supposed to run a surplus to pay back the debt as tax receipts increase and welfare costs decline. This he failed to do leaving the incoming Chancellor with a knotty problem. Did Osborne get the best solution?
If you cut capital expenditure and raise VAT you automatically reduce future growth. But that is what the Osborne did!
Ed Balls, Shadow Chancellor, has informed that if Labour win 2015 general election, Labour will just continue Tory spending plans and be even harder on welfare reform than the Tories.
The Greens enacted Austerity in the one council The Greens rule, Brighton, that is poor within its town boundaries - mostly students, working poor and pensioners (Brighton and Hove and area).