Osborne will struggle to sell his version of UK growth - Business Spectator
Alan has been a trusted source of investment advice to Australians for many years, and in 2005 he founded Eureka Report - Australia’s #1 online investment report. Along with Robert Gottliebsen and Stephen Bartholomeusz, Alan also founded Business Spectator, the popular business news and commentary website. George Osborne is preparing to deliver the first Tory budget since 1996. He will proclaim the success of the government’s 'long-term economic plan' and will use this as a platform to launch a radical reduction of welfare expenditure. But repeatedly extolling the success of your long-term economic plan does not mean that you have one. And an economy that in the first quarter was growing at a sluggish annual rate of 2. 2 per cent per head -- after a deep and protracted recession -- is not an indicator of sustained economic revival. There are two main components of the government’s economic plan. Thus, private sector debt is considered good and desirable whereas public sector debt is bad and harmful. what is important is the appropriate balance between borrowing to consume and borrowing to invest. In a period of cheap money, it is no surprise that consumers are buying new cars in record numbers ( 85 per cent of which are manufactured abroad ). the problem is that the state is not. Source: www.businessspectator.com.au
