Tuesday, 27 April 2010
Spending cuts to be deepest since 1970s
Following my recent post (Apocalypse-postponed), it is now being made increasingly clear that, whoever wins the election, massive spending cuts are going to have to happen on a scale not seen for generations. This will once again hit the economy, as well as the well-being of individuals and communities, and move the UK into the next stage of the crisis.
It will hit front-line services (particularly if 21st century management practices are not adopted), reverse the so-called recovery, reduce employment, reverse house prices, and steer the economy into another downward spiral (a double-dip recession). These will all also be exasperated by rising interest rates to pay for spiraling government debt (nb reducing the deficit does not reduce the debt, it just means the debt is increasing at less of a rate!), the risks associated with a flawed/unsustainable economy, and rising price inflation due to foreign exchange rates (and the huge rise in the price of oil).
Greece is starting to feel the pain and frustration/unrest is starting to grow ... and the UK is going to have to act effectively (e.g. introduce 21st century leadership/management and economics) quickly now if it's going to avoid this type of pain/unrest itself in the future.