Home | Accounting

Lets Get Fiscal : Relaxing The Fiscal Rules

Posted By: Ben Needles | Posted On: 2008-11-27 | Article ID: 120394

It seems to me that, for large swathes of the public, the two fiscal rules that govern economic expenditure are, if not totally incomprehensible, at least too shatteringly dull to care about. One states that borrowing should not exceed the bracket of 40% of GDP whilst the other, the golden rule, refers to the balancing of the budget over the economic cycle.

Its not exactly Bad Boys II is it? For the past 11 years these Brownite commandments have largely gone undisturbed. However, with financial storm clouds gathering overhead, it looks like they might not be as perennial as people thought.

The problem with this, naturally, is that if someone starts moving the goalposts, it somewhat throws the match into disrepute. The Conservatives, as one might expect, are practically queuing up to attack the Treasury over the issue. The last nail in the coffin for Browns reputation for prudence theyre calling it. The shadow chancellor George Osbourne, for example, rather sniffly referred to Brown giving the prisoner the keys to their own cell

A couple of rather adroit analogies arent they? Well, yes, until you read what Cameron said about these fiscal rules at his partys economic summit only two days previously:

I dont believe its impossible to try to get some political consensus [with the government]...about tight rules on fiscal policy

Thats how he decided to phrase his intentions for steadying up the economy. Elsewhere he claimed that he wanted to Reform the fiscal architecture Which sounds remarkably like the way Kevin McCloud might describe Labours policy of relaxing the fiscal rules

Of course, as the old saying goes, the duty of the opposition is to oppose, but to describe Brown (and invariably it is Brown and not the Treasury or Alistair Darling... I wonder why?) as some prodigal cad and then hint at proposing the exact same measures is pretty rich isnt it?

Many financial commentators have described Browns cabinet as standing at a crossroads with this issue. Either, they tighten their belts, raise taxes and feel the brunt of public unrest, or they slacken their belts, throw caution to the wind and indulge in a little more borrowed cash. The choice, clearly, is a tricky one:

ROCK: Oi! Brownie! How can you justify sticking to a set of outdated rules that will unnecessarily burden the public?

HARD PLACE: Oi! Gordon! where do you get off talking about borrowing more money when the financial situation is in such trouble?

Still, I suppose either of the two main positions are better than what Nick Cleggs thrown into the mix. His fair tax party has done somewhat of a u-turn of late and are now saying that they can solve the sticky economic climate by... lowering taxes.

Mmmm...? Well, wed all like to see how that plans out wouldnt we Nick? Sure youve thought this one through? Because I find it very hard to believe that every other economic advisor has dropped the proverbial clanger and forgot to add up these huge sums of money that are secreted around the different nooks and crannies of public spending. Brown doesnt keep a penny jar does he?

So what have we learnt? That the government is in trouble; that the opposition will belligerently scratch and claw at everything the cabinet say, and that Nick Clegg could feel the benefit of a nice sit down. Well whats new? Of course, detractors will rally around to call this the end of the Brown era of economics but that only matters if you believed in such short-sighted spin in the first place.

It seems to me that, for large swathes of the public, the two fiscal rules that govern economic expenditure are, if not totally incomprehensible, at least too shatteringly dull to care about. One states that borrowing should not pass the bracket of 40% of GDP whilst the other, the golden rule, refers to the balancing of the budget over the economic cycle.

Its not incisively Bad Boys II is it? For the past 11 years these Brownite commandments have largely gone undisturbed. However, with financial storm clouds assembly overhead, it looks like they might not be as perennial as people thought.

The problem with this, naturally, is that if human starts moving the goalposts, it middling throws the match into disrepute. The Conservatives, as one might expect, are practically queuing up to onrush the exchequer over the issue. The last nail in the coffin for Browns reputation for prudence theyre calling it. The shadow premier Saint George Osbourne, for example, rather sniffly referred to Brown giving the prisoner the keys to their own cell

A couple of quite adroit analogies arent they? Well, yes, until you read what Cameron said about these fiscal rules at his partys economic pinnacle only two days previously:

I dont consider its unacceptable to try to get some political consensus [with the government]...about tight rules on fiscal policy

Thats how he decided to phrase his intentions for steadying up the economy. Elsewhere he claimed that he wanted to Reform the financial architecture Which sounds signally like the way Kevin McCloud might describe Labours policy of relaxing the fiscal rules

Of course, as the old locution goes, the duty of the opposition is to oppose, but to describe Brown (and invariably it is Brown and not the Treasury or Alistair Darling... I wonder why?) as some profligate cad and then hint at proposing the exact same measures is jolly rich isnt it?

Many financial commentators have described Browns cabinet as upright at a crossroads with this issue. Either, they tighten up their belts, raise taxes and feel the brunt of public unrest, or they remit their belts, throw caution to the wind and indulge in a little more borrowed cash. The choice, clearly, is a tricky one:

ROCK: Oi! Brownie! How can you justify sticking to a set of outdated rules that will unnecessarily burden the public?

HARD PLACE: Oi! Gordon! where do you get off talking about borrowing more money when the financial office is in such trouble?

Still, I suppose either of the two main positions are better than what Nick Cleggs thrown into the mix. His fair tax party has done somewhat of a u-turn of late and are now saying that they can solve the sticky economic mood by... lowering taxes.

Mmmm...? Well, wed all like to see how that plans out wouldnt we Nick? Sure youve idea this one through? Because I find it very hard to believe that every other economic advisor has dropped the proverbial clanger and forgot to add up these huge sums of money that are secreted close to the different nooks and crannies of public spending. Brown doesnt keep a penny jar does he?

So what have we learnt? That the regime is in trouble; that the foe will hostilely scraping and claw at everything the cabinet say, and that Nick Clegg could feel the benefit of a nice sit down. Well whats new? Of course, detractors will rally around to call this the end of the Brown era of economics but that only matters if you believed in such short-sighted spin in the first place.

.

 

Article Source: http://www.articlecell.com

About The Author
Ben Needles

About the Author (text)

Samantha is a London theatre fanatic and regular West End theatregoer. She is currently researching the West End show Mamma Mia! - www.show-and-stay.co.uk/mamma-mia.html

best video game codes



Please Rate this Article     
Not yet Rated

 


 



Ken Wilson
Author ID - 2683
    View - Ken's Profile
    View - Ken's Articles

Lee Dobbins
Author ID - 148
    View - Lee's Profile
    View - Lee's Articles

Jim McDonald
Author ID - 1638
    View - Jim's Profile
    View - Jim's Articles
 Submit Articles
 Member Login
 Submission Guidelines
 Ezine Notifications
 Popular Articles
 Article RSS Feeds
 New Stuff
 About Us
 Link to Us
 Contact Us
 Privacy Policy
 Terms of Service
 

EnterArticles.com

Submit Articles

 

Monsterputt.com

Golf Clubs and Accessories

 

MarketingAU.com

Internet Marketing Help


 

ArticleCell.com » Copyright © 2006 - 2007
Terms of Service | Submission Guidelines | Contact Us | Link to Us | Privacy Policy | About Us

Bridgestone J33R 460CC Driver | J36 Cavity Back Irons | Bridgestone Golf

Powered by Article Dashboard