I response to my friend Lord David Prosser and thanks for your comments.
Whilst I agree that we need to cut our expenditure as a country, trying to accomplish that the way the Conservatives are attempting to at the moment is only going to lead us deeper into the depression we are already in. You are in Wales are you not, what is the unemployment rate in Cardiff and Swansea, pretty high huh!
How many of those can afford to buy goods that will increase the country’s output and put us the right side of the balance sheet. I know quite a few locally that are dreading the winter ahead as they simply don’t have the money to turn on the heating and if this is to be the cold winter that is expected, then one can only but guess as to the result.
I am of the opinion that a large number of cost reductions can be accomplished by streamlining the way government works particularly that of central government. Which I think many will agree is far too bloated, as well as harbouring a great deal of corruption. Huge saving could be made thereby reducing the country’s borrowing.
Here’s another example; let’s look at Quantitative Easing (QE) so far over the past few years 375 billion has been injected into the economy but where has it gone? Basically into the banks where it has remained in their coffers, maybe elevating their asset prices but are certainly not spurring investments, as it is supposed to do. Would it not be far more effective to use some of this huge amount of money to both stimulate the economy and to stimulate what we used to be very good at, inventiveness.
If 12.5 % of this QE sum was spent on installing Solar Panels on the approx’ 10 million homes in the UK that are suitable for such installations. The result would approx’ 50 billion put directly into the manufacturing economy of the UK and 10% of the total electrical generation requirement of the UK would be generated by this.
Should another 50 Billion be directed toward renewable energy and sustainability research establishments in universities around the UK, we might actually find ourselves ahead of the game. The UK used to lead the world at research and development and had done so for a hundred years or more, at present we certainly are not. Should the predications being made at present about the result of the fees that universities are now charging be correct, we soon be losing at great deal of the UK’s talent pool to European establishments e.g. Holland where no such exorbitant fees are charged.
How many jobs would this create tens of thousands at least perhaps more and 100 billion put directly into the economy, not into the assets of the bankers and the select few corporations.
Just a few thoughts!