Sunday, 5 November 2017

Extending The Corbynomics Sham To 16 Year Old Voters Will Harm Them, Not Help Them

Talk about being subtle: the left wing parties, led by Labour, treated 16 years olds as electoral chattel by pushing for them to have a vote in order to improve the number of seats their party has in the House of Commons (people of that age tend to vote for more left wing parties).

Unsurprisingly, as it would disadvantage their own political standing, the Tories filibustered the debate, meaning that there was no time for a Parliament vote on whether to lower the voting age to 16.

It was a squalidly transparent claim of Labour to want to 'empower' young people - no one was falling for it. But this does bring to bear another important factor in how young people embracing left wing economics and the promise of free sweets are going to one day pick up the bill for all the fiscal irresponsibility they demanded in their youth - nicely illustrated in one of the most iconic (and multifariously applicable) images of our generation:
The young people who are trusting Jeremy Corbyn's ludicrous magic money forest economic policies do not seem to realise that the government must raise taxes in the future on the very people they are trying to help now. It's a bit like buying your son a games console on his 14th birthday but then telling him he only gets to play on it if he pays for it on his 21st birthday. At no point along the way can this boy think of the games console as a free gift.
At the moment Corbyn wants to defer increases in taxation (for anyone earning up to £80,000 pa) by borrowing. The economics behind what I'm now going to tell you is more complex than my simple illustration, but not in any way that alters the efficacy of the generalised arithmetic. Suppose Corbyn wants to tax you £100 to help wipe out student debt. Here are some possible scenarios (figures rounded for simplicity):
Scenario 1: Corbyn taxes you a £100, which you remove from your £1000 savings account, leaving £900. A year from now, your bank account has grown (at 10% interest - again for simplicity) to £990.
Scenario 2: Instead of taxing you, Corbyn borrows the £100. This leaves £1000 in your savings account, which grows to £1100 a year from now. At that point, Corbyn taxes you £110, leaving £990 in your bank account.
Scenario 3: Corbyn taxes you £100, reducing your bank account to £990. Then he lends you the £100 back at 10% interest, raising your bank balance to £1000, which grows to £1100 a year from now. At that point Corbyn demands repayment of his loan, so you fork over £110, leaving £990 in your bank account.
Note that despite some complex tweaking of the knobs to adjust for real values over a lenthier execution time, all three scenarios bear out on the taxpayer no differently - the only major factor at play is the time that it is recouped. In other words, Helen the student who wants all her free sweets now is going to pay for them later in life anyway in ways that will esacape her naked eye.
The government is merely a representative agent of the taxpayers, and politicians are a bit like magpies - they steal from the shiny objects of enterprise to line their nests (magpies don't really do that - but it's part of popular mythology) - in that any good things that politicians can do for citizens are done as the result of extrapolating from the fruits of other people's labour.
Raising taxes depletes our present day assets, and increasing borrowing to pay for Corbyn's short-sighted policies depletes our future assets and only defers its main damage to a few decades' time when Jezza is a distant memory. No wonder Corbyn loves these policies - he'll be long gone when the voters that love them most end up feeling the costs.