Thoughts on Fiscal Policy

There has been a veritable storm of comment, criticism, blame and finger pointing over the current economic crisis, so I thought I'd put my simple tuppence worth in!

It is some time since I studied economics, but it seems to me that everything that has transpired stems from plain greed. That greed is at all levels of society in many countries and is compounded by corruption, ignorance, stupidity and/or lack of common sense at senior levels of government and bureaucracy over many years.

The fact is that, since World War II, society generally has been suborned gradually by talk of rights with little mention of responsibilies.

I recall when I was a lad in 1956, I was taken to a bank in Scotland to open an account, mainly for my pocket money and any monetary gifts I was given for birthdays etc. The bank manager sat me down and talked to me very earnestly about the virtues of thrift and how saving was essential if I was to get ahead in my life. When I went to draw money out on holidays, I was always ushered into his office for a chat about how I was getting on and what I wanted to draw my money out for. If I admitted to requiring it for inconsequentials such as going to a film or a show, I was made to feel that was decidedly not thrifty!

Fast forward to 1980 in Australia when I went for a housing loan. Little questioning was done before the loan was approved, even though I was newly married with a relatively small income.

Similarly, at school, little mention was made of our rights; we had none it seemed. The emphasis was all on our responsibilities, and very onerous they were, often driven home by a few strokes of the cane!

Some years ago, during the recession of the 1990's, I saw a mug on which was printed Abraham Lincoln's (1809-1865) fiscal policy. It seemed to me that it was so relevant at the time and that it has become even more so today, that I reprint it below in the hope that politicians and public servants may learn something, (although that is probably a vain hope).

"You cannot help men permanently by doing more for them than they can do for themselves.

You cannot build character and courage by taking away man's initiative and independence.

You cannot strengthen the weak by weakening the strong.

You cannot help the poor by destroying the rich.

You cannot prosper by discouraging thrift.

You cannot keep out of trouble by spending more than you earn."

How much has been forgotten or cast aside in 150 years.