The TUC protest on October 20th claimed austerity isn’t working. It claimed there was an alternative. It claimed this alternative was workable and realistic.
Firstly – how is austerity not working? Unemployment has fallen for another consecutive month. Youth unemployment fell as well. In fact employment is now at an all time HIGH. Inflation is down dramatically since the coalition came into government. Borrowing figures are falling. Our credit rating has remained at top levels when other European nations saw theirs fall. Confidence in markets has remained roughly in tact – the same cant be said for France where the recently elected Socialist Hollande has caused a chaotic panic amongst investors and business leaders. The UK is on the mend. Austerity isn’t a button you can press for instant results. It takes time. Come 2015 we can judge this governments economic record. I’m confident it wont be as poor as the TUC claim.
Secondly, why the hell was
Ted Millington, wait-whats-his-name?!? Ed Milliband there? Addressing a crowd carrying “end all cuts” signs when he himself said Labour would follow through with most of the coalitions spending cuts appears to me like he is protesting against…..himself.
Thirdly, what is this alternative? Tax the rich more? Well, that reminds me of a story my Dad emailed me the other week;
Bar Stool Economics ~ our tax system explained
Suppose that every day, ten men go out for beer and the bill for all ten comes to $100 and If they paid their bill the way we pay our taxes, it would go something like this:
The first four men (the poorest) would pay nothing.
The fifth would pay $1.
The sixth would pay $3.
The seventh would pay $7.
The eighth would pay $12.
The ninth would pay $18.
The tenth man (the richest) would pay $59.)
So, that’s what they decided to do.
The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve. “Since you are all such good customers,” he said, “I’m going to reduce the cost of your
daily beer by $20.” so drinks for the ten now cost just $80.
The group still wanted to pay their bill the way we pay our taxes so the first four men were unaffected…They would still drink for free…But what about the other six men – the paying customers? How could they divide the $20 windfall so that everyone would get his ‘fair share?’…They realized
that $20 divided by six is $3.33…But if they subtracted that from everybody’s share, then the fifth man and the sixth man would each end up being paid to drink his beer..So,
the bar owner suggested that it would be fair to reduce each man’s bill by roughly the same amount, and he proceeded to work out the amounts each should pay.
The fifth man, like the first four, now paid nothing (100% savings).
The sixth now paid $2 instead of $3 (33%savings).
The seventh now paid $5 instead of $7 (28%savings).
The eighth now paid $9 instead of $12 (25% savings).
The ninth now paid $14 instead of $18 (22% savings).
The tenth now paid $50 instead of $59 (16% savings).
Each of the six was better off than before…And the first four continued to drink for free…But once outside the restaurant, the men began to compare their savings.
“I only got a dollar out of the $20,”declared the sixth man. He pointed to the tenth man,” but he got $9!”
“Yeah, that’s right,” exclaimed the fifth man. “I only saved a dollar, too. It’s unfair that he got nine times more than I!” “That’s true!!” shouted the seventh man.
“Why should he get $9 back when I got only two? The wealthy get all the breaks!”
“Wait a minute,” yelled the first four men in unison. “We didn’t get anything at all. The system exploits the poor!”
The nine men surrounded the tenth and beat him up.
The next night the tenth man didn’t show up for drinks, so the nine sat down and had beers without him.
But when it came time to pay the bill, they discovered something important.
They didn’t have enough money between all
of them for even half of the bill!
And that, ladies and gentlemen, journalists and college professors, is how our tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being
wealthy, and they just may not show up anymore. In fact, they might start drinking overseas where the atmosphere is somewhat friendlier.
Either way the rally never found that elusive magic money tree and much to the disappointment of bewildered revolutionaries aimlessly walking the streets of Whitehall the government stands another day.
I fail to see what Saturday achieved (bar a colossal policing bill…)
(Media & Publicity)