Cuts in public spending will eventually lead to government surplus. Keep up the surplus for long enough and the nation can repay all its borrowed money. How does that make us richer? Sure we won’t be ‘bankrupt’, but we will also strengthen our currency on international exchange markets and so make imports cheaper and exports harder to sell. So this enrichment process makes it harder for us to compete in global markets and spending cuts throw millions below the poverty line.
In pure monetary terms things will cost more so inflation will rise and in our own backyard everything will cost more. Anyone on a fixed income such as a non-index linked pension is worse off. The country will have some very wealthy businessmen and a broad band of wealthy people who live off money manipulation. There will be millions of pensioners, disabled or sick people or unemployed people unable to have anything other than a bare existence.
So If the top few percent have a life most of us would need a lottery win to match; most of us get by and a whole swathe of people struggle to survive how does that make us rich?
Here’s a thought. How about, instead of squeezing the poor until the pips are dust, a bit of clever quantitive easing. I don’t mean the stupidity of letting the Bank of England issue several billion new bonds for the moneyed classes to buy and save with virtually no trickle-down so nil impact on the economy. The clever thing to do would be to declare a one off cash bonus to all pensioners and claimants. Money printed and given away to the poorest people in our society. Such money would immediately be spent and the economy gets more money pumped into it at no borrowing cost thus enriching us all… and that ‘us all’ is the inclusive definition of ‘richer’ I trust.