Folly of public spending; Mailbag.
This, under our current circumstances, is a huge rise. If we had continued with Labour government plans then, because borrowing would be ruled out, extra money would have had to have to come from taxation.
Many people equate public spending with economic activity. In their world, increasing government spending equals a prosperous country.
If we go back to the time of the glorious Margaret Thatcher, even she found it hard to control spending and, no matter what you hear, public spending increased under her leadership.
She recognised that to encourage the conditions for wealth creation, the State had to control its tendency to increase spending and increase taxes in order for the country to prosper.
Every time an attempt was made in her day to control the finances it was depicted as a kick in the teeth for the downtrodden, an attempt to stand on the windpipe of the working class.
If we can learn from history, we should be trying to make sure that state pension schemes are properly funded and paid for by the people who will benefit from it and not by future generations who will now have to work longer and pay more as it is.
The Coalition government is trying to make work worthwhile and make it possible to retire with a decent standard of living. Labour would have us driven into more debt and tax us heavily today in order to leave a massive financial hole for our children and grandchildren to dig out from. We have gone, under Labour, from having the best private pension schemes in Europe to sackcloth and ashes for the ordinary man. A tax on pension dividends saw to that. Governments must learn to financially rein in their demands, make it harder to be out of work and make sure that work is rewarded. If they can do that then the Coalition will be a success.
BERNARD MCGUIN Marsh
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|Publication:||Huddersfield Daily Examiner (Huddersfield, England)|
|Article Type:||Letter to the editor|
|Date:||Nov 12, 2010|
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