Plato would like to thank Andy Cook for this great layman's guide to what Labour has done to our economy.
"As the conversation has wandered around budgets, spending and deficits, I thought I’d try to get the real scale of the problem. After all, the expenditure sounds big, but to a budget the size of the Government's, it’s probably comparable to a packet of fags for a family budget.
So, scaling to about a “family of four” size (very loosely defined as “divide Budget by 15 million” and rounding off):
Monthly (take home) income has gone from about £2950 in 2005/6 to £3000 in 06/07, £3100 in 07/08 and dropped back to about £2950 in 08/09. Forecast is for £2750 in 09/10, before climbing back to £2950 in 10/11.
Monthly outgoings have gone from about £3150 in 2005/6 to £3200 in 06/7, £3300 in 07/8 and up to £3500 in 08/09.
Forecast is for £3750 in 09/10 and up to £3900 in 10/11
Or to put it another way, whilst we were in the good times, our family wasn’t able to live within its means, spending a couple of hundred quid per month more than we earned. And now, with income badly hit, we’re spending more. Up to £1000 borrowed per month to make ends meet. That’s not good.
Our combined overdraft, loans and credit card bill (not paid off) has climbed from £32 500 in 05/06 to £49 500 in 08/09. By the end of the 09/10 FY, we’ll owe £64 000. This will climb by at least £10 000 per year for at least the next 2 years.
On this scale, we’re spending just over £200 per month on defence, £650 on health, £500 on education, £180 or so on “public order” (cops?), nearly as much on interest on our debts (£170 - fortunately we’re benefiting from the drop in interest rates) and over £1000 on welfare. Oh, and about £57 on the environment and £17 on science/technology.
Income tax and NI between them bring in over £1300 of our monthly income. VAT plus excise duties are over £600. Business rates and corporation tax amount to £320. IHT is £12."
And if you want to see how big a trillion is - try this. The UK debt is currently enormous
Hmm - now does the nightmare that is Labour's credit card start to make sense?
From the picture of how American bankers count, a trillion is in fact a real billion and their billion is only a thousand million and I thought we were in real trouble! I am of course speaking as an engineer and not a banker.
ReplyDeleteIt would be amusing, the way the yanks want to appear better off by changing the meaning of words, if it were not for the fact it has backed fired on them and us.
The sort of debt the government has is outrageous and they and their quangos should be made to pay it back with their salaries and pensions.
Not cute but cool:
ReplyDeletehttp://www.telegraph.co.uk/earth/wildlife/6915442/Polar-bears-wrestle-in-snow-storm.html
If you're concerned about the economy don't read this:
ReplyDeleteUK Government Revenues Crash 30%
What are the media doing? It is as if everyone in Westminster and Fleet Street has buried their heads in the sand.