A Return to the Class System?

So yesterday George Osborne got to carry the tattered briefcase of tradition and present his austerity budget. To give credit where credit is due, he promised to make drastic cuts, and he delivered.

Of course let's not forget Georges', Nick's or David's background of private schools and Oxbrdge which makes them eminently qualified to understand the other 96% of the English population who are missing that silver article seemingly the accessory of choice in this new government.

Last night at my monthly economics Stammtisch one of my colleagues described this budget in terms of a cartoon he had recently seen which was a reprint from the 1920's. In it there was a ladder stuck into an oozing muddy morass with the working class standing on the bottom rung barely holding their noses above the surface, and the rest of society placed on the steps above with the upper class swanning it on top. To show their fraternity with the rest of society the top-hat wearing toff bravely agrees that in these times of austerity, they will all step down a rung.....

I don't want to condemn this budget outright. Social spending has gotten out of control. Incentives are out of whack and the budget deficit is far too high. But I see nothing in this budget which is aimed at furthering employment. I see a lot that is intended to incentivize those receiving social welfare to get up and get a job- I just don't see the jobs. It was especially galling to see investments in engineering development be cut while banks get off relatively scotfree.

The cost of bailing out the banks last year effectively negated all the tax income from the banking sector for the past 10 years. Many bankers who benefited from the low-tax low-regulation environment are now jetting off to tax-haven shores after having made their fortunes leaving the rest of society to deal with the mess.

My concern is social unrest. The British went on strike during WW II. They went on strike in the 1973 Winter of Disconten. Was all this a mild precursor to 2010?