Economics

I find myself looking rather ironically at the Prime Ministers Chancellors budget announcements for a number of reasons. 1) It is the first time in my life, I find myself on the slight benefit side of a budget announcement, though I consider other members of my family who have not done so well. 2) It is interesting (but none-the-less welcome) to see that it is mostly Tories who are pointing out how Browns budget switcheroo affects the poorest tax-payers of society: Gavin Ayling Guido Fawkes 18 Doughty Street Iain Dale Praguetory Interesting times... Meanwhile The Man Who Would Be King provides a link to Virtual Economy 2002 where you can play at having a go at your own budget. I had a go and I think I fixed it. Most notable changes: Reduced the rate of income tax (percent) : 6 Reduced basic rate of income tax (percent) : 10 Reduced higher rate of income tax (percent) : 35 Increased basic rate threshold (£pa) : 2,400 Increased personal allowance (£pa) : 6,000 Increased personal allowance for over 65s(£pa) : 8,000 Value Added Tax : abolish it VAT on fuel (percent) : 0 Duty on tobacco per pkt 20 (pence per pkt 20) : triple it! Duty on a pint of beer (pence) : double it! Extra duty on a bottle of wine : triple it! Extra duty on a bottle of whisky (pence) : triple it! Extra duty on petrol per litre(pence) : abolish it! Lowered vehicle excise duty (£p.a) for cars above 1,400cc : 50 Reduced base rate of interest : cut by 1/4 point Increased department of health : increase by 10% Increased department for education and employment (DFEE) : increase by 5% Increased the ministry of defense : increase by 1% Increased child benefit (per child) : 30 Lowered child benefit (extra for first child) : 2 Increased basic state pension : 100 Looking at the generated charts my changes brought about: Economic growth boom 2003-2007 with a sharp decline by 2010 Steady increase in national income up to 2009 Sharp drop in unemployment to -7% I think that's a record- companies can't find enough employees- wages rise. Inflation takes a nosedive in 2004- banks are actually paying interest instead of charging. lots of mortgage and equity release buyers, who are then made bankrupts in the 2000% rise over next 4 years. government debt drops from current 40% to 10% by 2009 (after a small rise). The exchange rate tanks... can anyone explain what this means? To summarise everyone benefits- single, family and pensioners apart from unemployed couples with 2 children who are finding an increase in tax on tobacco and alcohol... ...however... I would like to point out that not all unemployed people, on benefits for whatever reason, drink, smoke and breed like rabbits. Many decent people have no choice but to rely on benefits, but are ultimately more responsible than the cocaine-snorting upper-middle classes. See everyone can be stereotyped.