Communist UK

He knew his political life is on the line. The man who self-proclaimed he had rewritten the law of boom and bust, who had caused a great deal of malinvestment when he's the Chancellor of the Exchequer and now Prime Minister, who sold a majority of the UK national Gold reserve at rock bottom prices [3], who knew all too well that the bust is now happening for real announced in anticipation of the sharp rise in jobless numbers, the Government has made available an extra £100 million for re-training workers set to be made redundant because of the downturn [1]:

Gordon Brown promises action as unemployment hits 10-year high Gordon Brown has promised to do all he can to save people's jobs after unemployment soared to its highest level for a decade.

By Jon Swaine

Last Updated: 1:33PM BST 15 Oct 2008

Official figures showed the total jobless number has reached 1.79 million, the highest since March 1998, in the latest sign of the British economy's deterioration.

...

The statistics showed that unemployment rose by 164,000 between June and the end of August. The higher-than-expected increase - of 0.5 percentage points to 5.7 per cent - is the biggest since 1991 and the eighth successive monthly rise.

...

The Conservatives blamed Mr Brown for the bleak picture, saying decisions taken during his 11 years as Chancellor and Prime Minister were directly responsible.

Chris Grayling, the shadow work and pensions secretary, said: "These figures are a clear indication of the real world consequences of Gordon Brown's Age of Irresponsibility.

"Again and again he claimed that he had ended boom and bust. That looks pretty hollow now."

...

In anticipation of the sharp rise in jobless numbers, the Government has made available an extra £100 million for re-training workers set to be made redundant because of the downturn.

Official response from bhc investment:

• Where's the money going to come from? A government sells no productive good or service and therefore earns NOTHING. It can only get money by looting our resources through taxes, printing it, or through the hidden tax of legalised counterfeiting known as "inflation." There are some exceptions, of course, such as when the government sells stamps to collectors or carries our mail with gross inefficiency, but the overwhelming bulk of government revenues is acquired through taxation or its monetary equivalent.
• Why the workers are made redundant at the first place? Anybody care to answer? The reason the workers are sacked in the current economic climate is because they are deemed as not able to contribute positively to the productive capacity of a company. I know this doesn't sound very nice, but is the economic reality in a Darwinian [2] process. Brown is "stealing" the money from you and me and "redistributing" it to those who are deemed as unproductive. This is nothing more than a communist act, and it weakens the whole economic system further!
• What we need is to let the system to clean itself out. Government intervention simply makes matters worse.

... socialism must fail economically because of the economic calculation problem – the impossibility of a socialist government being able to make the economic calculations required to organize a complex economy... without a market economy there would be no functional price system... for achieving rational allocation of capital goods to their most productive uses. Socialism would fail as demand cannot be known without prices...

Ludwig von Mises [4]

-----//-----

References:

1. Gordon Brown promises action as unemployment hits 10-year high
2. Darwinism
3. How Brown Sold at the Bottom
4. Ludwig von Mises

Related post:

• UK Housing