Thatcher's government destroyed the British economy!
From the Cover of issue 1 of the printed TRUTH:
The image is representative of the murder of Julius Caesar on the ides of March, while showing Norman Lamont, the chancellor of the exchequer at the time, doing the murderous deed, owing to the fact that, and this is most important, unemployment at that time, 1994, was 4 million, 400% of what it was when Margaret Thatcher succeeded as prime minister in 1979.
During the General election campaign, Margaret Thatcher featured in TV adverts where she was seen asking one of the many people that were stood in a queue, if it was the queue for the cinema etc’, only to be informed that it was, in fact, the queue for the job centre:
As to what happened next, and what was and still is instrumental to this very day in all of that, I’ll let ‘Game Boy’, the TRUTH’s resident PC game aficionado, explain matters.
The problem, as the title of this article makes clear, is the destruction of the British economy. In order for an economy to thrive, it has to export more in overall monetary terms than it imports.
To complete the missions and adventures in the Sierra city building PC games, from Caesar III to Caesar IV, you have to make money through trade, more so than taxes, something that is exceedingly true in Caesar IV, as will be noted in this screenshot from a year in Caesar III:
During that year, I traded with the only two other cities for that map. Not only did I not import clay for pottery, or import olive oil, but I also didn’t construct any buildings. The result of my doing that caused a ‘negative economy’ for the other two cities and the highly profitable ‘positive economy’ noted by the revenue.
Some 2,000+ years later, the present, and the various countries of the world compete with one another in the production of the same thing. Computers, which can retail for around £400 each, are mostly made in China. That is very much a boost for the Chinese economy and a disadvantage, a negative one, for the UK economy (along with others, of course).
By far, the motor vehicle manufacturing industry was the most affected, with one foreign country buying out one British motor vehicle manufacturer.
That amounts to a loss in tax revenue, and that is what this is all about.
Back to the TRUTH’s editor, who will now explain all.
VAT! That’s right. VAT. Value added tax. Prior to the 1979 General election, the Conservatives promised they would not increase VAT by 100% (from its then 8%), and they didn’t, not until years later and the present (20%). They did; however, increase VAT by 87.5% and that affected the cost of manufactured items.
Here’s something for you to think about. What if VAT was 100%? Extreme, I know, but the hike, a seriously big one, emphasises the effect, BIG time!
Before I get to the comparison charts, there are a couple of things that those of you reading this, in particular, those who have never run a business and paid VAT or, nonetheless, are possibly unaware of, which the TRUTH researched.
Back then, the VAT charged on goods had to be paid to the appropriate body every 13 weeks while VAT claims for items bought, generally in the manufacture of goods sold, was claimed yearly. That meant, up to and thereafter, four lots of considerable VAT were going out before a lesser amount came back.
A perfect example of that is shops. A retailer buys something for £10.00 plus 15% VAT (£1.50). A total purchase price of £11.50. They mark it up to 100% (£23.00). Within 13 weeks, they are down £3.00 for every such item they sell and will only recoup 50% of that within 52 weeks.
£3.00, I know, doesn’t seem like a lot, until you consider the weekly takings of a retail outlet.
Weekly takings of £17,250 result in £2,250 VAT at 15%. Multiply that by 13 weeks = £29,250.
The problem lies with the fact that VAT is added at every purchase point in the manufacture of a finished item. A wool jumper requires wool from a farmer, someone to clean and wash the wool, someone else to turn the wool into thread and someone to produce the jumper itself, at which point it is sold to a retailer. In that example, five businesses, the farmer included, paid VAT.
There now follows the two tables that appeared on the cover of issue 1 of the Printed TRUTH along with a few more. The tables relate to a personal computer with the rate of VAT, from 8%, as it was prior to the 1979 election to the present 20%, added at various points indicated. Although labour costs can’t be quantified, a 100% mark up has been applied throughout.
With the current 20% VAT rate, the cost has inflated by over 50% of an 8% rate of VAT.
Just out of interest, the 5% VAT rate is that of France, for those of you wondering.
The alternative is the one the TRUTH suggested in 1994. As noted in the TRUTH’s expose ‘The TRUTH about the LIES about PORN!’ a copy of issue 1 of the printed TRUTH was hand delivered to each of the then three main political parties’ headquarters and a signature of acceptance obtained.
The solution is not only quite simple but one that will lead to a ‘positive British economy’ and that is to only add VAT at the point of sale to the consumer and exporter. A saving of £406-78 between the two, while the export price of just £232-80 is more attractive, especially when you both consider and realize the fact that the price of British made goods with a 20% VAT rate are a little over 70% more than the one the TRUTH suggested.
According to information known, the EU, European Union, which Britain is set to exit in October, is responsible for VAT. Having PM Boris Johnson lost his appeal over breaking the law to close the commons, if he does resign, as expected, will VAT be replaced, just as the Poll tax was?
For the record. The 4 million unemployed in 1994 cost the tax payer £240 million per week in Jobseeker’s allowance, amounting to £12,480 million for the year. In addition to that, there is housing benefit and council tax benefit. All the same, £12,480 million plus housing and council tax benefit is a lot, while I dare say, any business that operated at a loss of a fraction of that would fail.
Imagine, just for the moment, zero unemployment, something that has been unattainable by Governments since before 1979. In addition to a saving of £12,480 million plus housing and council tax benefit payments, as it was in 1994, those 4 million would be paying tax on their earnings, and, where applicable, rent and Council tax, along with travel expenses, again, where applicable, while those who’s earnings exceeded what they received in benefits, would have money to buy things. Thereby increasing the manufacture of goods, British made goods?
UPDATE!
According to an article on page 2 of the Metro dated October 22 2021, Government debt currently stands at: £2.2 trillion, numerically speaking, over: £2,000,000,000,000 – the highest ratio since March 1963.
The article, headed: ‘£4bn (£4,000,000,000) just to pay interest on Covid debt’, also explains: Overall, the public sector borrowed £319.9 billion (.1 shy of £320,000,000,000) between the end of March and September (6 months).
With the negative economy mentioned above, plus that amount of debt, it is now official! Britain is currently a 3rd world country, one with nothing else, save for the emergency services (Fire, ambulance and the police) to sell off. As a result, the only way to reduce and repay that staggering debt of over £2,000,000,000,000 (not forgetting the interest) is to increase taxes while cutting back on public spending. Especially since the alternative, as mentioned above, is and has been, beyond the comprehension of British Governments before and since 1994.
UPDATE!
July 25 2022
On the same day that the front page of most newspapers carried an article about the state of Britain’s NHS, an item inside the Metro mentions:
The interest on Britain’s debt is a staggering £20,000,000,000 per month!
Imagine what that amount (£20,000,000,000 a month), let alone the debt of over
£2,000,000,000,000, could better be spent on!
Recommendations for your further reading pleasure and enlightenment: ‘How Competent are MP’s?’ ‘How the British governments – central and local – let down the homeless and unemployed!’ ‘How PM Boris Johnson put two insulting fingers up at the over 75’s!’ ‘Spot the brain cell!’ ‘Spot the difference – Tieneman square and Trafalgar square!’ ‘How more shops could have been open during the Covid19 pandemic!’
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