Venezuela should be the richest country in the Americas, it is sitting on the world’s biggest crude oil reserves . Yet it’s currency, the Bolivar, has the world’s highest inflation rate. There are often shortages of basic necessities such as milk, flour and toilet paper. Corruption and crime are rampant. The government has become progressively more and more authoritarian, removing great swathes of democratic rights and often fighting its own people in pitched battles in the streets. All this because it adopted the failed dogma of socialism.
Now we have Jeremy Corbyn as the favourite to become the next Labour leader and he wants to bring these same failed policies to Great Britain, despite having seen for himself the immense damage they have brought to Venezuela. He must be suffering from cognitive dissonance, he is in utter denial of reality.
The above graphs represent startlingly how Gordon Brown trashed the British economy and how George Osborne has got it back under control again. Only the Labour party can try and deny the facts of what they did. The result of this incompetence is that we now spend 50% more money paying interest on our national borrowing than we do on defence. The debt is more than Â£1,500,000 million. The interest payments are aboutÂ Â£43, 000 million a year (about 3% of GDP or 8% of totalÂ tax income). Our number one national economic priority has to be getting rid of the budget deficit, creating budget surpluses and thus paying down the national debt.
Corbyn wants none of this. He wants to increase benefits and other social spending even more excessively than Brown did and he has no option other than to borrow money to do so. Except that the world will only lend to him at extortionate interest rates, making our situation even more dire. Corbyn says that he will tax the rich more, but they are already paying ALL the tax in Britain. And last time Labour tried a 50% tax rate it reduced government income. Corbyn says he will close tax loopholes, but after years of Gordon Brown increasing loopholes we have a chancellor, in George Osborne, who has run a crusade of eliminating them. Corbyn will find no more riches there, he is deluded once again..
Not only that, Corbyn wants to renationalise sectors of British industry, which is illegal under EU rules. He obviously has memory fade because these were utterly execrable when they were last nationalised and inevitably would be again. The market always knows how to run a business better than the state does. Not only that he will have to find billions to pay compensation to the current owners of these businesses. If he doesn’t he will be robbing from pension funds and from overseas investors, which would make his government into a pariah. Much as Venezuela is now.
In Britain we now have a startling competent Conservative government, they have given us the highest growth of any G7 country, record employment and an economy under control. Their policies have especially benefited the ordinary working man. But we can go from this to a Venezuela situation very quickly indeed, it only took six months for Syriza to put a recovering Greek economy in the toilet by applying ridiculous socialist dogma.
And if you want further evidence of how Corbyn would trash Great Britain then read the comparison of Cuba and Hong Kong.