More austerity needed in the UK!

[Giz]

So, it looks like the recent UK government cuts aren't enough:

(Summary from the Telegraph

The independent fiscal watchdog thinks that the Government is on track to have the public sector net debt falling in the medium-term, but that the burden will later swell again as spending soars to meet the needs of an aging population. The debt - currently 60.6pc of gross domestic product (GDP), or £920bn - is set to pass 100pc of GDP within fifty years
To avoid this scenario, politicians would have to implement a permanent tax increase or spending cut equating to 1.5pc of GDP, £22bn in today's terms, in 2016-17 to bring the debt back to its pre-financial crisis level of 40pc by 2060-61

(Link to actual report
http://budgetresponsibility.independent.gov.uk/wordpress/docs/FSR2011.pdf


Will there be the political will to address this? (Probably something that most of the developed world will face in the next few decades...)

 

[Mojo]

So, it looks like the recent UK government cuts aren't enough...

http://www.private-eye.co.uk/covers.php?showme=1273

 

[leftysergeant]

Then the obvious answer is to increase taxes. DUH!

 

[andyandy]

http://www.private-eye.co.uk/covers.php?showme=1273

Given the look on Osbourne's face I'd wonder where that chap next to him had his hands.....

And he does look familiar

 

[WildCat]

Then the obvious answer is to increase taxes. DUH!

You sure like raising other people's taxes.

 

[KoihimeNakamura]

Ah, cutting back spending. See it's working out well for them.

(Snark: I actually have to wonder if raising taxes would work. So hopefully it will.)

 

[MG1962]

You sure like raising other people's taxes.

Do onto others before they do onto you

 

[TraneWreck]

Ah, cutting back spending. See it's working out well for them.

(Snark: I actually have to wonder if raising taxes would work. So hopefully it will.)

Raising taxes is also contractionary policy, though less impactful than spending cuts in the midst of a liquidity trap.

It's blatantly clear what countries like the US and UK need to do. Our collective national retardation is keeping us from taking those obvious steps.

 

[McHrozni]

Predictions for 50 years ahead tend to be unreliable. How many predictions of 1961 for 2011 do you think were accurate?

McHrozni

 

[leftysergeant]

You sure like raising other people's taxes.

Time for the wealthy to start sharing the pain that Thatcherism has inflicted on the middle class.

The rich do not create many jobs these days, comared to the middle class.

Also, those businesses that do survive need customers.

That a slimeball like Murdoch can gobble up so much of the GDP by his control of the media without creating jobs or paying taxes certainly does not help.

 

[funk de fino]

http://www.reuters.com/article/2011/08/07/us-britain-riot-idUSTRE7760G820110807?feedType=RSS&feedName=worldNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FworldNews+%28News+%2F+US+%2F+International%29

What is it about Tories, stinking economies and riots? I am sure George and Dave wont mind while frolicking on their hols.