by MacDuff » 07 May 2010, 22:28
As an external viewer of things British, may I make one or two observations:
In the British election, the overwhelming necessity of reforming the public sector stands out. It is not just that the budget deficit is a terrifying 11.6% of GDP, a figure that makes tax rises and spending cuts inevitable. Government now accounts for over half the economy rising to 70% in Northern Ireland. For Britain to thrive, this liberty destroying Leviathan has to be tackled.
A prime minister should not get too much credit for climbing out of a hole he himself dug as chancellor. Chancellor Brown poured money into public services. As a result, Britain's budget deficit is almost as big as Greece's in proportion to its economy; its public sector is larger. This is a time-bomb of a legacy, and one that Mr. Brown is ill equipped to defuse. The prime minister has tended to take the side of producers-especially the public sector unions-rather than consumers. He frustrated some of Mr. Blair's efforts to reform the health services and education and slowed down others once he became prime minister.
Above all, the (Labour) government is tired. Mired in infighting and scandal, just as the Tories were in 1997. New Labour has run its course.Some hope that a hung parliament would usher in a refashioning of the centre-left: a Mandelsoned and Milibanded party would arise. But it is better for the country (U.K.) that Labour has its looming nervous breakdown in opposition. A change of government is essential.
These are not the views of a rabid right winger, I copied the above comments directly from The Economist of May 1st. Not known as a right wing magazine, indeed one which supported New Labour in the two previous elections!!!
But as a Canadian, I have to say that the value of the pound reflects the economy of the U.K. and the pound is just about flat on its face in the money markets. Yes, by not being involved in the Euro zone, the U.K. pound can slide on it's own. The Euro is burdened by the problem's of Greece's nightmarish debt and trying to bail it out (again, from a hole which Greece dug). The pound's slide down the slippery slope reflects the management capabilities of Mr. Brown's government.
Why should I care? Well my U.K. pensions when converted, are worth only two thirds of their value only two years ago. Remember that it was "our 'arold" Wilson who devalued the pound to 14/6d. It was Honest Jim Callaghan who had to bring in the IMF and it is "Wee Gordie Broon who dug the current hole. "Old" Labour? "New" Labour?
Like Lugless Douglas, a new name doesn't change the spots.
The U.K. bank collapses were a consequence of lack of suitable regulations and Mr. Brown's relationship to the City. We in Canada did not have to give a single buck in support of our banks - and our government is right wing.
I say all this, because like many ex-pats, I have been concerned to see a once great country abandon standards, morality and integrity. Whatever government emerges from the election, I wish it every success in dragging the U.K. out of the financial morass.