The Bank for International Settlements (BIS) released a report today on the state of the world economy and national budgets. It makes for pretty dire reading – especially if you think we are already suffering under unbearable austerity. http://www.bbc.co.uk/news/business-23028023
Bottom line: interest rates will at least double before the next General Election, and none of the incumbent politicians has a plan to get debt down to anything that could be considered reasonable historically.
To cope with this and get back to firmer ground the government is going to face cutting spending by £100Bn, not the £10Bn currently being negotiated. This simply cannot be done without a wholesale rethink of how to fund our social security. No amount of tinkering will work, the numbers are just too big.
LIFE’s plan to change social security to services instead of benefits (WellFair), to a system that pays the people delivering the services, instead of those receiving them, is the only plan being proposed by any political movement that can possibly cope with the the future we face.
If you think LIFE’s policies are radical, you’re not paying attention. LIFE’s policies are the most gentle, humane and digestible way forward. Instead of plunging into an abyss of austerity and debt without end, we are proposing a way to balance and joy. You may think it sounds corny, but it’s deadly serious – do the maths.
Start with £1,500Bn of debt (current).
Add £50Bn a year in interest (at current rates).
Add £70Bn a year in extra borrowing (current, with 2013 austerity).
Add £50Bn a year in interest at future rates (conservative estimate, could be twice this).
Add £50Bn a year to reduce the debt to £1,200Bn by 2020 (that’s still 80% of GDP)
= £220Bn reduction in spending required = 33% of all current spending.
Want to know how to solve this equation without destroying our society? Check the LIFE budget plans.