It seems Arthur Laffer’s famous curve is finally starting to bite into Gordon Brown’s economic plans, you know, the ones based on hope, pie in the sky, and getting one solitary day past the next general election date. Apparently Gordon is puzzled by Britain’s steady economic growth, of approximately 2%, but its fall in tax revenues, last year, of around £8 billion pounds.
Well, Gordon, it’s like this. If you borrow £37 billion pounds, plus a few other hidden tens of billions on public-private ‘partnerships’, you’ll get apparent economic growth, because all of the paperclip suppliers in the country have been working flat out to feed all of those nice new shiny government bureaucrats with nice new shiny stationery equipment. But one day all of those paperclips are going to have to be paid for, Gordon. I know, it’s just terrible, isn’t it?
And having hit the wealth-generating sector of the economy with a cornucopia of new taxes and regulations, since 1997, Gordon, the latest being an extension of IR35, and then having thrown the proceeds at your friends in the wealth-spending sector of the economy, you’re about to hit what we credit-card junkies call ‘economic reality’. That’s when the credit card company finally stops letting you borrow any more money from this month to pay off next month’s minimum card payment. Bummer.
If I were you, Gordon, I would get that Tony Blair out of office, right now, or at the end of January at the very least, to take his job. Then land poor old Alistair Darling in at the Treasury, so he can carry the can when it all goes bang. Does that sound like a plan, Gordon? Good. Glad we’ve got it sorted.
I’d send you a bill for fifty quid, for this consultancy advice. However, I sense that although you possess the economics of a half-wit, possessing political cunning to your fingertips you’ll already have the Tony Blair Hutton/Top-up fees assassination plan well in hand. Nice job on preparing his ejector seat excuse, by the way, “for reasons of my health”. Top quality.