Age of austerity to continue for decades, warns OBR

[xchrom]

http://www.guardian.co.uk/business/2011/jul/13/age-austerity-continue-decades-obr

Britain must brace itself for decades of austerity even after George Osborne's spending squeeze, to pay the price for an ageing population, the independent Office for Budget Responsibility (OBR) warned on Wednesday.

The OBR, set up by the chancellor to produce independent projections of the public finances, says the rising cost of healthcare and pensions, and declining tax revenues from the North Sea, will mean future governments have to take action to prevent debt levels rising inexorably.

Without fresh tax rises or spending cuts, the OBR says, the government's debt will hit a trough of 60% in the mid 2020s, compared with less than 70% now, before rising rapidly to hit 107% of GDP by 2060-61. Although the deterioration in the public finances is more than a decade away, the OBR urges politicians to make long-term decisions now, to prevent the economy drifting into a debt crisis as the population ages.

"Policymakers and would-be policymakers should certainly think carefully about the long-term consequences of any policies they introduce in the short term. And they should give thought too to the difficult choices that will confront this country once the challenge of the current consolidation has passed," the study says.

[dipsydoodle]

1. The price of living longer

Will probably affect all countries. Populations just need to learn to deal with it.

[izquierdista]

2. Draft the rich

Since the budget can't pay for it, the rich need to share in the sacrifice. They (personally, not their assistant) need to do 20 hours a week at a nursing home. They (not one of their staff) need to do the custodial rounds at the local elementary school. They (not their domestic help) need to pitch in at the local food bank. Once they are required to spend of their time, I think they will find that they would have rather parted with some of their money.

[Lifelong Protester]

3. I like your idea.

[Newest Reality]

4. We cannot accept that nonsense!

Austerity for whom?

It is an age of expertise in manipulation and redistribution of wealth, plain and simple. What must end is the gross inequity that makes austerity for the masses seem plausible.

Money is currently debt, or credit, as it is also referred to. Huge profits and bankster's interest skim-off, (or is that scrape?) the surplus of our work, wealth and power into the hands of the few. The resulting power is then used to cajole us into accepting the resulting austerity as a reality and, if that fails, forcing us into that equation.

The process continues until the sovereign peoples have no access to either wealth or power and simply end-up in indentured servitude simply because the accrued debts incurred can never be payed off.

Look at the vast amounts of financial wealth that has been amassed by a small gang of families and the corporations they hide behind. That also translates into disproportionate political and other forms of power.

If you can believe that austerity is the price that we have to pay for their stronghold on finance and commerce, then austerity, in ever-increasing amounts, is what you and your descendants will inherit from all of this. When we ask where our personal power and wealth, (as in having enough to live a decent life) is, none of the magic spells of economic theory that support this system hold the answers we are looking for. They exist to support, largely, the ravenous behemoth crouching over us all with an intimidating grimace that uses fear, diversion, division and confusion to assure that we forget our numbers and the power therein.

[txlibdem]

5. +1

Truth.

:applause: