UK Announces Radical Spending Changes, Following In Canada’s Footsteps
June 8, 2010
UK (ChattahBox) – Chancellor George Osborne has announced plans to follow in the footsteps of Canada in reducing spending, as part of a series of harsh cuts that have caused an outcry of protest in the nation.
The coalition government has been seeking to perform the drastic spending cuts created by the Tories, with Prime Minister David Cameron being accused of ‘softening the voters’ ahead of the withdraw of major funding.
Chancellor Osborne has now announced it will be going forward, as they attempt to emulate the formula used by Canada in the mid-90′s, where they took a $250 billion budget, and turned it into a surplus within three years.
The formula was a simple one: take what had to be spent versus what could be afforded, and cut spending accordingly.
The severe reduction in spending did its’ work in Ottawa, but the plan is already drawing criticism from economists in Britain.
An article in The Guardian pointed out the obvious: Britain is not Canada. The temporary shift in the public sector under Liberal PM Jean Chrétien was conducted under very different circumstances, and was reversed shortly after.
Conducting the same cuts in the UK, under a coalition government following years of public programs directed by Labour, could be catastrophic. It is a point that even Cameron is admitting, as he is expected to warn Brits of the coming pains of the new government, which he says will be harshly felt by everyone in the country, regardless of class.
He fails to mention that it is the lower classes that will feel it the most, and already tens of thousands of jobs are expected to be cut in the first wave.
If this plan goes forward, further job cuts are expected, and the leaders within the government are remarkably unsympathetic.
What do you think of the plan to slash spending so severely?