Parts of the United Kingdom have become so heavily dependent on government spending that the private sector is generating less than a third of the regional economy, a new analysis has found...If that was not frightening enough apparently some large private sector employers are considering adopting a 3 day work week.
Across the whole of the UK, 49% of the economy will consist of state spending, while in Wales, the figure will be 71.6% -- up from 59% in 2004-5. Nowhere in mainland Britain, however, comes close to Northern Ireland, where the state is responsible for 77.6% of spending, despite the supposed resurgence of the economy after the end of the Troubles...
The state now looms far larger in many parts of Britain than it did in former Soviet satellite states such as Hungary and Slovakia as they emerged from communism in the 1990s, when state spending accounted for about 60% of their economies.
The prospect of the three-day week returned to haunt Britain yesterday as it emerged that ministers are considering paying firms to cut hours in order to survive the recession...This is incredible. Their is a reason why the command and control government economic policies of the Soviet Union, India under the license raj and pre-Deng Xiaoping failed -- private individuals and firms are significantly better at allocating resources and creating wealth than government bureaucrats.
Major firms such as JCB have already downed tools for one day a week and are considering moving to a three-day week, with state help, if the recession gets worse. The firm's chief executive, Matthew Taylor, said that he is pressing Lord Mandelson, the Secretary of State for Business, to introduce compensation for workers if their hours are reduced.
Not only is the extent of government involvement in the economy of Great Britain disturbing, these programs are essentially destroying the future of the British economy. The Labour Party is stealing the wealth of future generations of Britains to preserve their political power. The next generation is going to be so crippled by government debt that they will be forced to pay exorbinant taxes just to maintain a decent credit rating. With the average total fertility rate (the average number of children that would be born to a woman over her lifetime) at only 1.90 (where 2.1 is required to maintain the current population), not only will the next generation of Brits have to financial support a larger proportion of pensioners as a percent of the total population -- they will have to pay off for the reckless financial decisions of the this generation.
Advice to any citizen of Great Britain under the age of 40 -- GET OUT WHILE YOU STILL CAN!!!
Hat tip to Reason's blog Hit & Run and Mike Shedlock's blog Mish's Global Economic Trend Analysis.
No comments:
Post a Comment