Things are about to get very nasty for the vulnerable in Britain:
warned today that Britain’s “whole way of life” would be disrupted for
years by the most drastic public spending cuts in a generation as he
said that, unless such cuts were made, annual interest payments on the
UK’s “staggering” debt would rise to around £70bn a year within five
While Cameron is pledging not to make cuts to services for the very needy, his main focus is the public sector that will be the target of severe austerity measures. Cameron stated:
“The global financial markets are no longer focusing simply
on the financial position of the banks. They want to know that the
governments that have supported the banks over the last 18 months are
taking the actions to bring their own finances under control. Around the
world people and their governments are waking up to the dangers of not
dealing with their debts. And Britain must be part of that international
Cameron said the country was “paying the price” for
the fact that the size of the public sector had got “way out of step”
with that of the private sector.
Public sector workers had been
“insulated” from the harsh realities of the recession while everyone
else was paying the price, he said.
While Cameron is correct in his assertion that the public sector has been insulated from the recession, he failed to mention that the public sector was the only reason the economy survived the crisis in the first place. The deregulated financial markets and over reliance on the service sector caused the epic crash, and the country survived because of tax payers money channeled through government back to the private sector.
The recipients of the money (ie. the rich) will not be contributing to the recovery of the country. Corporate taxes will not be raised and banks will pay no new taxes under the Tory/Lib Dem government (they will actually pay less) and the burden will fall on workers in the public sector and the working poor who will receive less benefits. This bait and switch tactic used by the Right is a classic example of crony capitalism and the reason Britain’s economy will continue to work in the interests of the rich at the expense of the middle classes and poor.
The logic goes something like this: Government uses tax payers money to bail out the rich, then blames too much government for the crisis and cuts spending everywhere else. This is welfare in reverse – capitalism and free markets for the poor, and subsidies and handouts for the rich.
Ben Cohen is the editor and founder of The Daily Banter. He lives in Washington DC where he does podcasts, teaches Martial Arts, and tries to be a good father. He would be extremely disturbed if you took him too seriously.