The real issue is the size of the state

first_img Show Comments ▼ More From Our Partners Astounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi KCS-content Thursday 9 December 2010 9:12 pm The real issue is the size of the state FORGET about the students, the violence and the row over tuition fees. The real debate is not about the cost of universities. It is between those who think the state should account for an ever-greater proportion of the economy and society – and those who believe that the only way there will be any progress in Britain is for the government to shrink. For the past decade, all of the pressure has been one way: towards an ever-larger state, funded by ever-greater amounts of tax (either on current workers, investors and consumers, or on their children via debt). The coalition is attempting to gradually reverse this trend. Its task is immense, as the latest figures from the OECD, published in its November economic outlook, demonstrate. Public spending troughed at 36.6 per cent of GDP in 2000, after which Gordon Brown turned on the spending taps. By 2007, spending had increased to 44.1 per cent of GDP, an astonishing rise of 7.5 percentage points of GDP. Then came the recession and the decision to continue spending at even greater rates. Public spending jumped to 47.4 per cent of GDP in 2008 and then to 51.4 per cent of GDP in 2009; we waved good-bye to capitalism and became a socialist country. State spending remained at 51 per cent of GDP in 2010; the private sector spent less than half the nation’s income and the government more than half. Public spending has increased by 14.4 percentage points of national income in just a decade. If all goes well, the government’s share will fall back to 49.9 per cent next year, hardly a revolutionary change. All of these figures actually underestimate the state’s real size and exaggerate that of the private sector: GDP includes value added tax, which means that the tax to GDP ratio involves double-counting.Of the 28 OECD countries, the UK is the tenth highest ranked by state spending as a share of GDP. The old free-market model is dead and buried. It is an astonishing transformation – one made all the more extreme by the fact that public spending is lower in London and the home counties – and concentrated in the rest of the UK. If you were a social-democrat and believed that more public spending meant better public services, you would expect the quality of the UK’s schools to have improved beyond recognition. Yet the facts tell a completely different story. According to the OECD’s Pisa stats from earlier this week, England has fallen from 7th in reading in 2000 to 25th today, from 8th to 27th in maths and 4th to 16th in science. These findings are a disgrace. If they weren’t so self-interested, the left-wing agitators and students in the streets of London yesterday would have been protesting about the decay and rot in the UK’s primary and secondary education system, caused by governments of all parties and intensifying during the Labour years. And what about the view that massive public spending will keep unemployment down? Again, the facts tell a different story. Official numbers (from a year ago) reveal that there are 5.87m adults on one of the out of work benefits, 15.8 per cent of the working age population. This extraordinary figure, which will have only slightly improved since, includes everybody officially on the dole, as well as all those on other benefits such as incapacity. We have tried big government. It has almost bankrupted the country. It hasn’t delivered the goods. It is time for the real debate to [email protected] whatsapp Share whatsapp Tags: NULLlast_img read more

Green & Black’s considers MBO

first_img Green & Black’s considers MBO Sunday 16 January 2011 10:59 pm whatsapp Show Comments ▼ Organic chocolate maker Green & Black’s management is looking for ways to extricate the company from Kraft, according to reports. The firm’s management is said to be struggling to retain an entrepreneurial spirit now they are part of the food giant Kraft, which bought out Cadbury’s last year. The Financial Times reported Green & Black’s was considering either a management buy-out or a partial MBO. Last night a Kraft spokesman told City A.M. the firm would not comment on market rumours. Share KCS-content Read This NextRicky Schroder Calls Foo Fighters’ Dave Grohl ‘Ignorant Punk’ forThe WrapCNN’s Brian Stelter Draws Criticism for Asking Jen Psaki: ‘What Does theThe WrapDid Donald Trump Wear His Pants Backwards? Kriss Kross Memes Have AlreadyThe WrapPink Floyd’s Roger Waters Denies Zuckerberg’s Request to Use Song in Ad:The Wrap’Sex and the City’ Sequel Series at HBO Max Adds 4 More ReturningThe WrapHarvey Weinstein to Be Extradited to California to Face Sexual AssaultThe WrapThe Truth About Bottled Water – Get the Facts on Drinking Bottled WaterGayot’The View’: Meghan McCain Calls VP Kamala Harris a ‘Moron’ for BorderThe Wrap’Black Widow’ First Reactions: ‘This Is Like the MCU’s Bond Movie’The Wrap whatsapp Tags: NULLlast_img read more