If the Tories don't get in I'm leaving the country
Posted by Mark on 1st Dec 2009
Anyone who has read the Ellandi blog will know that I am pretty left of centre for a property chap, heck I'll even admit to the fact that I was actually a card carrying member of the Labour Party until well into my 30's.
Which is why I really must explain why I am voting Tory next May.
Ah, the 50% tax rate I hear you say?
To be fair earning £150k next year is something to aspire to.
It's more the case of being terrified what a hung parliament would do to the UK in these difficult times and according to The Independent (see more proof of my pinko-lefty credentials), this is almost a dead cert.
Tuen Draaisma of Morgan Stanley has a fear for next year that "The UK becomes the first of the G10 to have a major fiscal crisis as elections lead to a hung parliament".
Why would a hung parliament be such a bad thing?
I've often thought that Proportional Representation would lead to a nice ineffectual government stripped of dogma; after all decades of coalitions don't seem to have held Germany back?
The difference, of course, being that the Germans are not fiscally incontinent, have credibility in respect of keeping on top of inflation and don't rely on the rest of the world to fund its deficits.
Despite still being in recession, the rest of the world hasn't punished the UK too badly. They have even let us get away with a fairly blatant spot of competitive devaluation, which has certainly beggared the shopkeepers of the RoI that neighbour the border with North. However "the markets" tolerance of this is built on the premise that after the election, one of the main parties will cut the crap and get on with a seriously painful bit of tax raising and service cutting to get somewhere near a sustainable level of borrowing.
In the event of a hung parliament, or worryingly even the anticipation of a hung parliament, where every painful decision will be fought over tooth and nail or even avoided, UK plc will lose any credibility that it has overseas. What happens then?
-The pound tanks (even further)
-We loose our AAA rating, bond rates shoot up; we can no longer sustain our massive debt
-Inflation rockets due to the increased cost of raw material imports
-Interest rates are ratcheted up to curb inflation
-Plague, pestilence, famine........
You get the picture?
Basically Iceland without the free hot showers and Bjork.
So I am going to vote Conservative for the first time this June. Having said that though, I am not sure how effectual this will be given that I live in Lambeth.
Maybe PR is not such a bad thing?