One swallow does not make a summer, nor does one quarter make a recession, no matter technical, no matter mild.
Despite the budget deficit cuts, austerity measures in England, which are quite painful in reduction of services and job cuts and less money in social welfare, the U.K. economy grew by 0.9 percent in 2011. The fact that in the final quarter there was a 0.2 percent contraction is equal to saying someone earning 100 pounds will now be getting 2 pence less. Don't we all wish it had been applied in so straightforward a fashion?
Nick Clegg, the Liberal arm of the coalition, would like to see the £10,000 personal tax allowance brought forward, so it can help working people have a little bit more of their earned income to spend in the squeezed household budgets. The sooner, the better.
Regarding the £26,000 cap on the welfare benefits per family annually, I think the debate has become very muddled. People should perhaps be asked if they would prefer to work instead of being on welfare benefits, if they were given some incentives, for example, a down-payment to buy their first house, or a tie-in job at the local school.
If they start to create work for people on benefits and it becomes an attractive proposition, then more people will work, and that will create wealth. That would reduce the debt mountain that so many countries have accumulated. Work creates wealth, it improves peoples health by keeping them busy and satisfied, and gives people a lift-up.
Let me have some feedback on this topic please.