David Cameron has said, predictably, that the UK’s economic problems are “even worse than we thought” and that painful cuts to tackle the deficit would affect “our whole way of life”.
This is straight from the Milton Friedman approach to crisis response. First the shock – a financial crisis that requires painful action; and then the awe – cuts that affect our whole way of life.
So what should we expect now? First, massive cuts in public expenditure, far more extreme than the cuts in the Thatcher era. Then wholesale privatisation, a token amount to the voluntary sector, but mainly to the private sector where huge profits, made fo by the tax payer, will be made. And there will be tax cuts to “incentivise” private sector investment.
This will produce a redistribution of wealth from the public sector to the rich and the very rich.
Anyone who objects will be ridiculed by the media, particularly the media controlled by Murdoch and Desmond. They will ignore or dismiss alternatives to cuts. For example, why does the government not first begin with the £40 billion of uncollected taxes? Because it is their friends who would be required to pay what they owe.
Instead there will be cuts to the “welfare bills”, public sector pay, and funding to the voluntary sector.
Just wait and see: there will be new tax exemptions allowing further billions of tax revenues to go uncollected, and it will be the rich and the very rich who will benefit, the friends of Cameron, Osborne and Clegg.
If Cameron is purely motivated by society’s well-being, he should ensure that those with the greatest ability to pay, do so. And those who struggle even at the best of times, be spared. But no, everyone will pay, and the pain will be felt most by low paid men and women. And given that low pay affects women more, it will be women who will be most adversely affected.
Is this what those who voted Lib Dem thought that they were voting for?
Filed under: Capitalism, Economy, Politics Tagged: | Conservative, cuts, David Cameron, Economy, George Osborne, Lib Dems, Milton Friedman, Nick Clegg, privatisation, public sector, public services, tax, tax cuts, voluntary sector