By David Mc Williams
JK Galbraith, the great American economist, said that the key job of a leader was to “understand the anxieties of the people, and do something to ease these anxieties”. The Budget is an opportunity to set out the stall of any leadership, to articulate a coherent policy and to get on with those policies that might assuage the anxieties of the people.
When judged from this standpoint, this Budget is an extraordinarily confused piece of financial gymnastics where the gymnast performs all sorts of tiny contortions, unconnected moves and ultimately lands unbalanced, pleading that the judges see some choreography after all the clumsy footwork.
If anything, it heightens the anxieties of the people because the people who have been hit most are mothers dependent on child benefit, homeowners already in huge negative equity and those who are paying PRSI which has been increased. In fact, one of the greatest myths from yesterday is that income tax has not been increased. What is PRSI, if not a tax?
The Government does not seem to understand that the ticking time bomb in this country is the problem of mortgage arrears, which is primed to go off as taxes rise and incomes fall. This Budget makes the average young worker considerably worse off. These are the very people who are part of the 128,000 who are in arrears, unable, not unwilling, to pay their mortgages. This figure is rising. Their anxieties must be heightened this morning…………..
full article at source: http://www.davidmcwilliams.ie/2012/12/07/budget-is-yet-another-botched-job-from-our-impotent-government?utm_source=Website+Subscribers&utm_campaign=332552d2f8-22112012&utm_medium=email
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