Spending power

I think the model of any good economy is similar to that of any good household, you don´t spend more that you earn. Unfortunately in Britain and Spain there are those who believe that the government has a magic wand and money can simply be produced! This is simply not the case. The British economy is still in a bad state because the government is being forced to borrow money because it is spending more than it earns. The British Chancellor George Osborne should be congratulated for all his efforts to bring spending under control because otherwise British will fall even further into debt. Interest payments on Britain´s enormous loans are taking vital revenue away from government funds which could be spent on hospitals and schools. Unless the debt is brought under control the economy will continue to suffer. Tax the rich is an easy option, but the problem is that if you tax the rich too much they will simply move away to another country. Tax the big corporations too much and they will do likewise. So there has to be a fine balance. One of the saddest state of affairs is that Britain did not have the necessary reserves to bail-out the banks and was forced to borrow the money, even though Britain had enjoyed almost a decade of good economic growth. Balancing the books should be the ultimate aim of any government and save money if possible. Osborne may have his faults but at least he is making moves to bring spending under control.