Abandon All Fear

What nobody else seems to be saying…

[Budgeting] Economics

Posted by Lex Fear on March 21, 2007

I find myself looking rather ironically at the Prime Ministers Chancellors budget announcements for a number of reasons.

1) It is the first time in my life, I find myself on the slight benefit side of a budget announcement, though I consider other members of my family who have not done so well.

2) It is interesting (but none-the-less welcome) to see that it is mostly Tories who are pointing out how Browns budget switcheroo affects the poorest tax-payers of society:

Gavin Ayling
Guido Fawkes
18 Doughty Street
Iain Dale
Praguetory

Meanwhile The Man Who Would Be King provides a link to Virtual Economy 2002 where you can play at having a go at your own budget. I had a go and I think I fixed it. Most notable changes:

Reduced the rate of income tax (percent) : 6
Reduced basic rate of income tax (percent) : 10
Reduced higher rate of income tax (percent) : 35
Increased basic rate threshold (£pa) : 2,400
Increased personal allowance (£pa) : 6,000
Increased personal allowance for over 65s(£pa) : 8,000
Value Added Tax : abolish it
VAT on fuel (percent) : 0
Duty on tobacco per pkt 20 (pence per pkt 20) : triple it!
Duty on a pint of beer (pence) : double it!
Extra duty on a bottle of wine : triple it!
Extra duty on a bottle of whisky (pence) : triple it!
Extra duty on petrol per litre(pence) : abolish it!
Lowered vehicle excise duty (£p.a) for cars above 1,400cc : 50
Reduced base rate of interest : cut by 1/4 point
Increased department of health : increase by 10%
Increased department for education and employment (DFEE): increase by 5%
Increased the ministry of defense : increase by 1%
Increased child benefit (per child) : 30
Lowered child benefit (extra for first child) : 2
Increased basic state pension : 100

Looking at the generated charts my changes brought about:

  • Economic growth boom 2003-2007 with a sharp decline by 2010
  • Steady increase in national income up to 2009
  • Sharp drop in unemployment to -7% I think that’s a record- companies can’t find enough employees- wages rise.
  • Inflation takes a nosedive in 2004- banks are actually paying interest instead of charging. lots of mortgage and equity release buyers, who are then made bankrupts in the 2000% rise over next 4 years.
  • government debt drops from current 40% to 10% by 2009 (after a small rise).
  • The exchange rate tanks… can anyone explain what this means?
  • To summarise everyone benefits- single, family and pensioners apart from unemployed couples with 2 children who are finding an increase in tax on tobacco and alcohol…

…however… I would like to point out that not all unemployed people, on benefits for whatever reason, drink, smoke and breed like rabbits. Many decent people have no choice but to rely on benefits, but are ultimately more responsible than the cocaine-snorting upper-middle classes.

See everyone can be stereotyped.

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2 Responses to “[Budgeting] Economics”

  1. I agree it is interesting that Tories are the ones making the noise but it is not surprising to me. While the socialists believe they are doing the right thing, it is right-wingers who have failed…We have failed to communicate our belief in social justice through the disciplines of individual responsibility and freedom.

  2. Lex Fear said

    I’ve always believed that giving people financial independence frees them to make decisions to be charitable.Yes there are greedy capitalists out there, but there are also generous people who find it difficult to be generous at times (working class are the most generous people from my experience).There is always a fine balance- the extreme right leads to injustice with regards to the poor, the extreme left leads to loss of individual freedoms and liberty. Society operates best somewhere between these extremes.

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