Two weeks ago The Business newspaper revealed the devastating fact that the British tax burden (going up) was higher than Germany’s tax burden (going down). It was the clearest sign yet that the Brown-Blair axis was eroding the supply-side progress of the Thatcher years. Today’s Business newspaper provides three excellent more reasons why Gordon Brown does not deserve his reputation on economic competence….
Falling productivity – The Business:
"Britain’s productivity growth has collapsed to its
lowest rate since 1990, when Margaret Thatcher was still prime
minister, according to an analysis of official statistics this
weekend. Output per worker increased by only 0.6% last year, the
weakest for 15 years, in a devastating blow to Chancellor Gordon Brown,
who has long emphasised that increasing productivity was his main
Globally weak education standards – The Business:
"Great Britain is facing long-term economic decline and social chaos unless it urgently improves its schools, business leaders and economists warned this weekend after it emerged that children have suffered an unprecedented drop in reasoning ability. Employers said a groundbreaking study of 10,000 children, which reveals that 11- and 12-year-olds are between two and three years behind where they were 15 years ago in terms of their ability to think and reason, confirmed their worst fears. They said that better skills are essential in the global knowledge economy and to compete against highly skilled workers from India and China."
Rising fraud – The Business:
"Fraud in Britain has risen to the highest level recorded since 1995, according to a new survey to be published on Monday. The government and financial institutions are the main victims identified in KPMG’s Forensic Fraud Barometer which records big fraud cases heard in the UK. It shows the figures jumped nearly three times from £329m (E481m,$583m) the previous year to £942m for 2005. More than 222 cases reached court over the course of 2005, up from 174 cases in 2004."