As usual last week the Chancellor of the Exchequer presented his budget to Parliament, setting out how this Government plans to spend our money which it has collected in taxation. Year after year in good times and bad, the money disappears in ever greater quantities with no thought for the future. Continually we hear about problems left to them by previous parties that had control of the purse strings, and although every government rolls out the same hackneyed statements nothing constructive is ever done.
Governments all around the world have had to come to terms with a financial and property bubble that nearly destroyed all the economies of the western world. Even though the elastic just about held with vast amounts of money pumped into the financial markets, nothing seems to have changed.
OK we survived. But isn’t it time for a different view of economics, instead of surviving on vast amounts of debt? Can we not start looking towards Governments building a financial platform for the future? At this moment in time we the taxpayer own one very large bank and a huge chunk of another, what does the Government want to do? sell them off and give everyone a tax rebate. Surely a more sensible argument would suggest a fund for the future.
Politicians say we should not burden our children or grandchildren with our debt, although it was Ok for our parents, grandparents and great grand parents to do just that. They were more than happy to burden us with the debt from two world wars, but we aren’t allowed to question the rights or wrongs of their decisions just shut up and pay up.
Governments in other parts of the world understand that they have a finite resource and consequently have instituted sovereign wealth funds developing wealth for the future of people in these countries. Gas and oil rich countries are leading exponents of this plan for the future, so why cannot Britain use the proceeds from the sale of some small part of these banks? This could be invested in other companies and then a small proportion of our taxes could also be invested, the exchequer receiving dividend payments as a source of future income could reduce taxes.
Buying Government and private bonds could reduce the tax burden not just for individuals but also companies. It is time for a change in the financial view of the economic world plan for the future don’t just tax and spend, come on think of some one else for a change.
© Michael Douglas Bosc
(Author of A Loving Son and A Caring Killer)