Global Economy Update

If you so happen to open a page of the newspaper, most probably it will be telling you about how bad the economy is in the United Kingdom and what has Gordan Brown have ineffectively helped the economy by lowering the VAT (value added tax) from 17.5% to 15%. I have enough of it. Why?

I had enough of such news because it is not news at all. We know that the economic downturn have affected most of the people in the streets. What is important is what the leaders have done to counter act such downturn.

I could not praise Gordan Brown more than what he has done for the UK economy. Many people would blame him for ‘forcing’ Tony Blair to resign which is actually a rumour. We commoner would not know what really happened behind closed doors. What is important is what he would do to spur the economy, preventing the economy from going through deflation right now.

Yes, he recently announced that he will inject billion of pounds into the market as starters to revive the economy. Although there are many job losses which is unavoidable in these days, he aims to provide jobs for the British People. So far, he is struggling, not because he is not doing what he can but, actually has done too many things at one time. For ten years the UK economy have benefited from the market boom. Right now, it is a different situation. Why? That is because I believe that there is a cycle when we are dealing with the ups and downs in a capitalist market.

We do understand that the economic downturn originated from the USA where home owners could not pay up their mortgages and banks and financial institutions have to bear the losses from auctioning houses or any assets arising from the defaulters. I am sure that you have also heard about the scandal regarding a Wall Street financial analyst, Madroff, who is actually under investigation for operating a pyramid scheme which involved many banks including HSBC and RBS (Royal Bank of Scotland). What can we do about it? We consumers rely on banks to deal with our money because we trust them. What is the matter with them? Oh no… Why do we see some people earning millions while the majority of people are jobless? Is this unfair?

That is why Gordan Brown said that personal income tax will rise for those people who are paying 40%. The income tax rate will increase from 40% to 45%. Sounds like Robin Hood to me? Oh yes, he is. I wish he will continue to help revive the economy.