I feel sorry for civil servants who honestly believe that they gave up the possibility of higher salaries in the private sector in return for an inflation proof pension
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A little fact. Their salaries are higher.
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To reduce our debt we need to CUT both EXPENDITURE & TAXES
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Agreed. Except that expenditure is up over the last two years, above the rate of inflation. Taxes are up. Deficit is still there. Debt is still there.
It's tipped.
On Greece, you have to ask what is the same, and what is the difference.
1. Deficit - Same 10.5% in Greece, 10.4% here
2. Debt (borrowing only) to GDP 150% in Greece, 158% in the UK. Another score draw
3. Debt structure. In the UK maturities are longer which is why you haven't seen the problems as Greece has, where debt was short term. They need to roll it over, and the market has taken fright.
4. Taxation. Greece is in the mess because it wasn't taxing people. If they start taxing they have some lee way, particularly if they default In the UK we can't do that and get out. Taxes are already too high. Quite how the UK government is in the same mess (points 1 and 2) as Greece when they were taking so much tax shows just how screwed the UK is.
So what should happen?
It's the supply side. Demand (more spending, such as government and film tickets, just means the money is gone).
So we need to change the rules to make it more attractive to invest in things, so that it happens. That means more savings.
1. Cut CGT
2. Cut corporation tax
3. Increase investment allowances.
4. Increase pensions savings. I would get rid of the state pension, state second pension, civil service pensions, bar that which has already accrued. Then you have mandatory savings. Only if that fund runs out in your retirement do others help. More savings, and higher pensions as a result. People have lost 75% of their pensions allowing the government to spend their NI.