Ok – so it’s not a very festive post, but an important one none the less. Gordon’s Christmas Present to the nation, well it’s the closure or going in to administration of some well know stores, with up to 10 more to follow. The list so far:
- Whittards of Chelsea
- The Officers Club
All going bust. What’s next in the New Year when traditionally shops do worse? And to cap off the attack on Gordon’s handling of the economic woes by the Germans, the International Monetary Fund is now attacking him. I’m too young (no honestly) to remember the Wilson and Callaghan years, but they ran out of money also. What other weapons can we use, we’ve had an ineffective VAT cut (most essentials are VAT free anyway), interest rates have dropped, making imported good more costly and seeing the pound reach parity with the Euro – is printing more money the answer. No. These old socialist solutions don’t work – never have.
When a family is hit with falling income and raising costs, it does not borrow (or should not borrow – one could argue that easy lending is hurting) it makes savings, it reduces spending, it cuts wastes and it may even stop doing things. So why is the Government not doing that, why does it still have an army of special advisers, why is it not tackling expanding budgets by demanding cuts in spending, especially wasteful and unnecessary spending. George Osborne is right – eventually all Labour Governments run out of money. This one is about and the worse thing is, its our money, entrusted to them, that they are running out of.
The Conservatives would ensure money was lent to the power house of the economy, small and medium sized businesses, they employ most people, making sure their cash flows through the economy. Labours answer – to charge 28% interest on emergency social fund loans to the redundants, jobless, and poorest in society. One thing’s for sure the way Labour is spending and borrowing, somebody at some stage will have to start paying back and that’ll be a tax bombshell.