What passes for our self obsessed government these days continues to demonstrate a woeful lack of grip on both themselves and the economy. I've repeatedly written about the pressing requirement to eviscerate government spending and promote growth through lower taxation and smart investment. HMG though, has all but missed the boat. The penny will eventually drop but it will be too late for thousands of businesses and individuals and particularly for the politicians responsible for a lack of purpose and clarity of thinking.
It's a fact that government spending hasn't actually been cut. Simply, the trajectory of spending increases has been slightly lowered. Meanwhile the nonsense alarm is clanging away with hourly updates from Leveson telling us what an incestuous, corrupt and colluding collection of under qualified clowns our political elite have become. We can make a start on both the problems of government spending and political intrigue by jettisoning all special advisors. Don't chuck just the odd one under a bus, do a job lot. That's right, fire them all by 10am and by 12am the country will already feel a better place.
The taxation issue meanwhile is just plain silly. The chancellor has slashed the wrists of the wealth generating and revenue contributing section of society and blood is gushing out of the economic body of UK plc. Here's an example.
I’m told, (anecdotally), that sellers can now negotiate rates with the big estate agents. We can all see that property isn’t shifting up and down the country, (except in central London where the big agents don’t even now bother to work Saturdays. This is a typical market response to stupid tax policies designed to make chippy Liberals feel good when they get together for their sandal wearing, tofu munching sessions.
A stamp rate of 7% on a £2m property means that the buyer must earn £280k pre tax, at 50%, to pay the tax. Now, few of us will lose any sleep at the thought of Justin Fothering-Frampton of Hamptons not being able to upgrade his Aston, but the positive trickle-down effect on removers, plumbers, carpet firms, decorators, furniture retailers, gardeners and the rest clearly completely pass the dreamers at the Treasury by.
I sit in quiet bemused bewilderment and ponder how much economic damage they will be allowed to inflict on us before someone wakes up in a eureka moment and shouts, “I know, let's try the low tax = growth thing.”
In the unlikely event that this selfish, self indulgent preening shower actually switch on and start making some constructive decisions we might find ourselves eventually crawling out of recession just in time for the inflation storm that is coming our way, currently due to hit in late 2013-4 by my reckoning. That's a nice little by product of current central banking printing which will eradicate whatever wealth you may have left at that point.