Tuesday, 7 December 2010

Somewhere, Over a Rainbow

Well it's certainly nice to see that in failing to understand basic economics, Britons are not alone: The French have rioted over the raising of the pension age to a tad above 30. But then they'd riot if breakfast was late. It is their raison d'ĂȘtre - a revolutionary lot. The Greeks have also been on the warpath at the rescue budget. The most recent nationality to throw their hat into the ring / toys out of the pram is the Irish.

The French are, of course, the odd one out there. They, like Britain, are taking pre-emptive action lest they end up in the sovereign debt crisis Greece and Ireland find themselves in.

Just in case anyone has missed economics 101: if you (country/business/person) spend more than you have, for every year from now to eternity, you will eventually become broke. People will stop lending to you as the interest payments drown your income. You either need to earn more or spend less. For people that's fewer holidays/Jimmy Choos or taking on a second job, for countries it's reducing public spending or increasing tax revenues.

You may have already read (here and here) that I am a little irritated by the cries of anguish at the unfairness of moving towards an affordable budget. Perhaps, though, it is not surprising that there are such complaints at the measures our Government has taken here. If even in the face of the bankruptcy of their country, the Greeks and Irish (not all of them, but enough) still think it's wrong to try to balance the books, what hope have the British of realising its necessity still some distance off? Lets just hope we never get there and if we do, Britons realise (unlike the protesting Irish) there is no cuddly leprechaun with a pot of gold at the end of a rainbow to help us.

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