A U-Turn? A fuck up...

The Chancellor has made some sweeping changes (a U-turn if you will) to compensate those who have been kicked in the balls by the abolition of the 10p tax rate. Basically, this most fucked over by it will get £120 a year to make them feel better.

Which is fair enough, really. It will compensate fully 80% of those affected by the changes, and compensate the remaining 20% by at least half. Oh happy days! At least for those involved.

Except there is a small problem. The 10p tax rate was scrapped to pay for a tax cut for others in the economic system. By spending £2.7 billion on compensating those stung by another tax cut, there is a black hole in the accounts of the nation. To the tune of £2.7 billion. Which rather begs the question "where is this money coming from?"

The answer is simple:

"Mr Darling... said the measures would be funded through borrowing so as not to take money out of the economy while it was slowing."

Magic. Let's borrow the money. Because an entity that cannot afford to meet existing commitments borrow more money to avoid making difficult decisions seems like a really sensible thing to do. Really fucking sensible. And in no way has that sort of logic created something like the credit crunch in the past.

The Chancellor is an economic retard.