Prime Minister, Theresa May really did "make much fanfare about a 3.4% funding boost" for the NHS, trying to get the public to believe in the myth that is "Tory compassion". Not only did she want us convinced the NHS funding crisis would be solved, when the truth is that a 5% increase at least is necessary for the UK to "keep up with other modern societies", but also that extra borrowing, or the much more likely extra taxation would be needed for the government to be able to afford the £20bn.
This is, quite simply, a con!.If £20bn is to be invested in any public service, much of the initial sum gets back to the government via taxation. Much of the £20bn will be spent on new jobs, extra pay or new contracts, and all of these will involve the payment of taxation which, of course, goes back to the Treasury. Apparently, according to tax expert, Richard Murphy, the average amount of tax received by the government is 35% of GDP, so when the government "invests" £20bn, all it really needs is approximately £13bn.
Even that figure is too high, because of what economists call "the multiplier effect"; this refers to the extra money spent as a result of the new jobs, increased pay and contracts, which in turn generates more income for the government through direct and indirect taxes.
The Labour party should be pointing all of this out to the public, as they must know the mainstream media will side with the government. Funding the NHS to the tune of an extra 5% annually is far more manageable to a rich country like the UK, when the extra taxation thereby generated is taken into account.
The Tories have been conning us about the affordability of public services for too long!
No comments:
Post a Comment