August 2017
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“Don’t mention the deficit, Ed! And definitely don’t mention immigration!”

The two highlights of Ed Miliband’s speech to the Labour conference were, of course, the two things he “forgot” to mention – immigration and the deficit. So for those of you who may have been disappointed, here are the facts:

1. Immigration – I believe that the current rate of issuance of new National Insurance (NI) numbers to foreign nationals is around 46,000 a month – about 2,000 every single working day or 5.5 million a year. Any single immigrant earning less than about £20,000 a year will take more in public services and benefits than they pay in taxes and any immigrant with a wife and two children earning less than £34,000 a year will take more in public services and benefits than they pay in taxes.

From that, I hope readers can work out that immigration is a disaster for Britain, swamping us with Third World and EU detritus, overwhelming our schools, NHS and housing and pushing up public spending.

2. The deficit – Hopefully, unlike 91% of the population who don’t understand what a deficit is, readers of this blog realise that if a government spends £100bn a year more than it takes in taxes, it is running a deficit of £100bn which it has to borrow and on which it will have to pay interest from here to eternity. Moreover, hopefully readers of this site, unlike 91% of voters, understand that every year a country runs a £100bn deficit, its national debt increases by £100bn

Ed Miliband didn’t mention Britain’s deficit. Who could blame him? Just click on the chart below to see more clearly

deficit Sept 2014

The chart shows the annual general government deficit (or surplus, in a few rare cases) for a selection of European countries as a percentage of their GDP since 2000. The countries included are the UK (in dark blue), the 18 countries of the Euro Area (in red), France (in green), Germany (in purple), Greece (in orange), and Italy (in light blue). Negative numbers represent a budget deficit, while positive numbers are a surplus.
Why is the chart too horrible to mention? At the beginning of the 21st century, the UK had one of the largest government budget surpluses in Europe. It was certainly much higher than many of our direct competitors. However, the financial crisis in 2008 hit the UK particularly hard, and by 2009 we had one of the largest deficits. Although the UK government has been reducing the deficit slowly since that trough in 2009, we are still in the unenviable position of being behind Italy, France, and even the euro area average – and a long way behind Germany, who have managed to roughly balance their budget for the past couple of years. So far this year all the data we have suggests that in 2014 our deficit might increase for the first time in five years, which is likely to put us even further behind..

Ed Miliband didn’t mention the deficit and the debt because he wanted to create a picture of a socialist paradise in which immigrants, the lazy, the useless, the obese, the worthless and especially those in the public sector would live in luxury thanks to all the money contributed by the few people who can be bothered to work.

Trouble is, there is no money to pay for Ed’s socialist Nirvana. That’s why Ed didn’t mention the deficit.

1 comment to “Don’t mention the deficit, Ed! And definitely don’t mention immigration!”

  • MGJ

    They used to say that Socialism works fine until you run out of other people’s money. Then they discovered you could tax the un-born. Next workaround was to create vast piles of pretend money, ladle it into the coffers of the (bankrupt) banks and make out it had real value.

    What could possibly go wrong?

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