Why the cuts are Necessary, a layman's guide.

Ok, quick explanation of why all the government cuts are necessary, very much in layman's terms

I am leaving out GDP, as that figure has nothing to do with government income and only has any point if tax was at 100%

Lets look at a family, they are comfortably off and earn £51,400 per year after tax.

They have been spending too much on credit cards though so owe £77,100 (this is 20% more than they earn) to credit cards and don't have a mortgage or house to secure these on, so there is nothing to sell to repay them other than the items they have purchased them selves (which will have dropped in value, or been consumed). This is 151% of what they earn each year - so if they spend every penny just on paying off debt, didn't eat or pay rent it would still take 1.5 years to pay off!

Because of their lifestyle, they are giving money to their elderly parents who have no pension or savings so are having to pay it out of current funds.

With all of this they are spending £66,900 each year, dispute their already heavy debt. Which means they are spending £15,500 more each year than they earn (that's a 20% increase in their debt just the next year), and as interest rises on the debt, this will go up with out increasing spending any more.

here's those figures in a more succinct format.

£51,400 Income

£66,900 Expenditure (120% of income)

£77,100 Current debt (151% of annual income)

£15,500 annual increase in debt (20% of debt)

If a family was in this condition, they would be expected to go bankrupt as they would not be given any more loans and wouldn't be able to cover the debt.

Change those numbers from thousands to billions and that was the state of the country at the end of 2010, and it has gotten worse since.

If the UK goes bankrupt, no other country will trade with us - we rely on imports for most of our food and no longer really have a manufacturing base. That would instantly make us a third world country begging to survive. There would be no pensions, no retirement, no benefits and no NHS - and that is the only alternative to cuts! (The Thatcher government dealt with the last massive public debt by selling off all our utilities, we don't really have anything left to sell).

So what I ask is - is it worth putting up with cuts for a few years while we get this sorted, or would your rather face the alternative?

Peter Mandelson, Spying and Students

Not a good start to the week from the government, Whilst the Prime Minister is at his Fife constituency desperately trying to avoid getting kicked out at the next election, Peter Mandelson is supposedly running the country from Corfu via blackberry . . . . (Note that Peter Mandelson is not currently an MP and not elected, another of New Labours knocks against democracy with the large increase in unelected officials in the cabinet)

Independent Article

Chris Huhne has pointed out the frightening levels of government surveillance, with over 1500 surveillance requests made every day last year - an very few of them relating to Anti Terrorism, the excuse for bringing the said laws in. I have already posted at length about this and no doubt will again, but Chris brings the points well enough now -even using on of my favourite statements about it, that George Orwell's 1984 was supposed to be a warning, not a blueprint.

BBC Article

What I really want to get my teeth in to this morning is the student situation, a report from Scotland shows a climate of spiralling debt for students, meaning most students from poorer family's have to work well over the recommended 10 hours maximum per week, with student loans, commercial loans and credit card debts leaving them in a terrifying financial situation, and one that had a direct impact on their ability to study (how do you study well when you are exhausted and cant stop thinking about your financial problems). This means lower grades and less chance of getting a good job that will help to pay off the debt.

BBC Article

The governments plans to solve falling attendance from poorer family's, not by reducing the financial strain, but by reducing the grades required by poorer students by 2 grades. This will just cause a two tier system in the university's and lead to resentment from student that had to study harder to get in - adding to the problems rather than resolving any.

And then to add insult to injury they are talking about limiting the number of multiple occupancy houses allowed in any one area so that finding a shared house will be harder for students (and anyone else who need to share due to being unable to afford the extortionate levels of rent at the moment - a problem that is on the increase and means there is a need for more shared housing not less). As shared accommodation becomes less plentiful it means that those still able to provide it will be able to charge a premium, putting yet more strain on student finances.

BBC Article

The government claims to understand there is an issue with rental costs in the country, but it seems that they are intent to throw petrol on the fire rather than to put it out. A policy we are seeing appear with frightening frequency across all levels of government policy.

What we need is a clear national constitution, setting out people's rights, Who is eligible to take what office in government, and what level of surveillance is allowable for national security with out infringing on people right to some level of privacy.

Along with the a consultation and rework of the electoral system in the UK, setting fixed terms amongst other things (something that will stop governments from calling elections when it is convenient for their position in the polls) the Liberal Democrats will also add a Bill of Rights to the British Legislation, something we have never had and something that will curtail all governments to come.

The Scottish Assembly is looking at the student situation, but this is something that needs to be done nationally. Though there is not the money in the economy to do all we would like at the moment, cutting back on the 12 Billion IT expenditure that the government has started, and that is spiralling out of control, over budget and is currently 5 years late in some cases (and that recent research shows has had no positive effect on government efficiency, in fact government efficiency is getting worse not better) and improving the military procurement system will put some money in the budget.

We will strive diligently to improve the finances of the worst off, unlike the current government and work for a fairer society for all. Unlike the Conservatives, and now New Labour (as Mandelsons holiday shows) we do not rely on big business for our funding, that is both our greatest strength (as we do not have to try and appease them with policy) and our greatest weakness (as we are always low on funds, and do not have enough money to stand in every constituency at times). We are funded by the people we represent, so we can centre our policy on their requirements with out having to pander to our sponsors desires or loose them.

If the Liberal Democrats get in we can offer real change. Though there is a strong feeling that all politicians are the same, there have only been two parties in power in living memory, Labour and the Conservatives, and in their current forms they are hard to distinguish from each other. If every voter that wasn't vote Liberal Democrat because they think we can't win we would have a good chance, if every voter that dosn't vote because they think we are all the same, was to give us the change to prove them wrong (what have they got to loose, if they are wrong and we are different then they have gained if they are wrong nothing changes) we would win by a landslide.

I call on all voters to bear this in mind, give us a chance, get behind us rather than splitting to various small independents or "special interest" parties, then you will have a chance to see real change, positive and lasting change and a change that will set Britain up to move forward in the 21st century as a shining example of what can be done buy the people that the rest of the world can follow!