A New Model of Austerity: How to Eliminate the Deficit and Remove the Debt

by Charlie_East_West on June 25, 2015


Austerity isn’t working. Since the Tories came into power in 2010, the national debt has almost doubled to a staggering £1.5 trillion. The Tories have created more debt in five years than the entire period of the 1997-2010 Labour government. In fact, the Tories have created more debt than all Labour governments combined.

– The entire debt of every single Labour government = £472 billion.
– The entire increased debt from the Tories since 2010 = £600+ billion.

It gets worse. As well as rocketing debt levels, the Tories have destroyed the real economy and living standards for millions of people. There are 13 million people in poverty and we have 1 million visits to foodbanks in 2014. Instead of trying to alleviate poverty, the Tories have cut benefits and prioritised tax cuts for the rich, bank subsidies and continue to ignore trying to claw back the £100 billion+ lost in tax avoidance and evasion every year.

The Tory economic philosophy is based around giving huge tax cuts to the rich to incentivise them and giving huge benefit cuts to the poor to incentivise them. The consequence of this that the rich get richer and there is a lack of money to help the poor. So, why not tax the rich to help pay for the poor?
Silly old me. This sensible and compassionate idea will never catch on in Tory Britain.

As well as toadying up to fat cats, big business and the super rich, the taxes obtained from you, me and everyone else are wasted on paying out £90 million a year to run the House of Lords, false economy PFI contracts, a potential £150 million upgrade to Buckingham Palace, £100 million per year on MPs expenses, a potential £100 million on a Trident upgrade, illegal wars and a duck house. Christ, £250,000 of our money was recently spent on MPs getting their own portraits done.

Successive governments and politicians are spunking away taxpayers money on getting the approval of their chums in the City, boosting their own puffed up self importance, maintaining delusions of grandeur and splashing out on fripperies. Yet, these same politicians are hell-bent on creating a narrative that ignores all of this wastage to focus on creating fear and loathing propaganda against the poor. £1.2 billion is lost every year on so-called benefit fraud, yet almost ten times that amount is lost every year on tax avoidance and evasion. Yet, the so-called “benefit scroungers” are the ones who are demonised.

Unnecessary use of public funds are now pouring out the system, and yet our public services and welfare state is being dismantled as a blame game projection punishment for the mistakes of the banks. The message that this sends out is a pretty grubby, brutal and ideologically bankrupt one – Austerity: Punishing the poor and public sector for the mistakes of the rich. But, by punishing the poor and the public sector, this in turn, creates more wealth for the rich.

Austerity is a complete sham. It has to be the most morally dubious political ideology in my lifetime. It has failed on so many different levels. It has doubled the debt. It has left millions on the breadline. It is destroying many of our public assets to provide a venture capitalists playground. It is increasing the gap between the rich and the poor. It is leading to social divide.

Austerity should focus on the higher numbers of fiscal claw back at the top rather than the bottom of society. By implementing a few austerity measures on the rich, we could actually wipe out our deficit and debt without any pain on the poor or public services. A new model of austerity where the rich pay their fair share, and our public assets and safety net for the poor is protected.

This can be done in a number of ways:-

1. Inject some clout into HMRC to tackle tax avoidance and evasion. By adopting a rigorous approach to chasing down tax dodging, anything between £30 billion – £100 billion could be saved every single year – A figure that is potentially enough to wipe out the entire annual deficit.

2. Stop acting like a ego fuelled quasi-imperialistic global policeman. Stop misplaced military interventions and Trident. Without Iraq, Afghanistan and hosting nuclear weapons, we would save billions in taxpayers money.

3. Abolish the House of Lords. This unelected house of cronyism is an affront to democracy. It represents everything that is bad about Britian. Pomp, ceremony and a £100 million a year price tag. Scrap it, and use the money to give nurses a pay rise.

4. Charge a 0.5% Robin Hood Tax on all non consumer-based UK Financial Transactions (trading and derivatives). This could raise £6 trillion over 5 years, which would clear the entire national debt and leave the country in profit. This would provide so much money, that it would allow for huge infrastructure programmes to be commissioned, public services and the welfare state to be improved to world class status.

This is the model of austerity that should happen, but sadly, is unlikely to ever happen. The Tories would never do this. Labour have lost their guts to do anything as radical as this. So rather than create a set of radical and progressive policies that would benefit society, reboot our way out of lazy political thinking and balance the books, we have endless party political versions of free market Thatcherism. We have now had 35 long years of this methodology. This model is a busted flush. We urgently need to do something different.

Unfortunately, due to the right-wing manipulative forces within politics, business and media we remain in a locked-in syndrome of neoliberalism. Protect the super rich. Hammer the poor. Asset strip the country. Demolish the social contract.

Austerity isn’t working. But the establishment don’t care one jot about this. Austerity works for the powers that be.

{ 2 comments… read them below or add one }

Eddie Kaye June 25, 2015 at 12:34 pm

Add to the abolition of charitable status for tax dodging independent schools.


Wanda Lozinska June 25, 2015 at 9:49 pm

I heard that the National Debt which is now £1.5 trillion is costing us approx. £1billion per WEEK in interest payments!


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