Cleggonomics…or Something More Imaginative?

“The question is not how much money the state is spending, it is how it spends it. The real progressive test for any state intervention is whether it liberates and empowers people.” Nick Clegg.

Oh dear! Methinks young Clegg has lost the plot. You cannot mitigate inequality by investing in public services no matter how well you spend the money. Public spending doesn’t liberate or empower people it does completely the opposite.

Politicians have failed to grasp that they cannot create wealth or make the economy grow. Only people can do that, but they need politicians to create the right environment to allow them to make it happen. The current – and proposed – level of public spending means it ain’t going to happen. Politicians have completely the wrong focus.

The question is very much how much the state is spending. It needs to be drastically reduced, halved even. The emphasis needs to be on investing in the private sector and creating the right environment for it to be able to survive and prosper. Britain has to start making ‘things’ again – and quickly. And the way forward? Reduce the cost of labour .

Income tax and National Insurance are a tax on labour. We need to liberate our economy from these restrictive taxes. Why have we made it so expensive to employ people? It’s daft. We even tax people into poverty by having ridiculously low tax thresholds which then means that we have to have a ludicrously expensive welfare system to look after them.

Nick Clegg has been trumpeting tax reform, but is he talking about tax tinkering or real reform? Are we going to be fobbed off with populist initiatives that deliver noting worthwhile, or is he prepared to push for something more dramatic that will make a real difference? I’m not over optimistic…I think I had better go and buy my pet pig a microlite

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