Economy
UK PM Gives Frightening Forecast For Nation's Finances
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Prime Minister David Cameron of the UK is no Winston Churchill. He gave a chilling speech about the future of his nation’s finances, perhaps as a possible means to frighten its citizens to accept austerity. He began his maiden speech on the nation’s economic future by saying sharp spending cuts were absolutely necessary. “Why we need to do this. Why the overall scale of the problem is even worse than we thought. And why its potential consequences are therefore more critical than we feared.”Cameron blamed the previous government for the country’ s problems, but that is academic now. Cameron’s forecasts are that the public debt could reach 1.4 trillion pounds in five years. The annual interest payments on that are expected to be 70 billion pounds. “£70 billion means spending more on debt interest than we currently do on running schools in England plus climate change plus transport,” he said
Cameron’s speech will likely gain him nothing with the voters who put him into office. The intransigence that public official in Greece, Spain, Portugal, and even Germany face as they attempt to make cuts in entitlements is strong. Powerful unions in each nation will fight them to the detriment of GDP if necessary.
Cameron may believe he has a mandate, but it only goes as far as what the British believes that the government owes them
Douglas A. McIntyre
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