Wednesday, 7 April 2010

Taking money out of the economy?

Why is reversing Labour's NI tax rise taking £6 billion out of the economy?

It seems more sensible to leave £6 billion in the pockets of families and businesses to spend as they see fit rather than giving it to Gordon Brown to waste.

1 comment:

Mark Wadsworth said...

Other people have posted similar things recently, and the answer is, you are right and they are talking rubbish - once govt spending is past a certain level (and we are about double that level) then a govt can neither take money out nor put it back in to 'the economy'. So it'd be better to leave well alone.