Reforming the state

Radical Britain

Britain has embarked on a great gamble. Sooner or later, many other rich-world countries will have to take it too

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Readers' comments



Again, I am seriously surprised by the way the Economist is trying to ‘portrait’ the current policy in the UK in the most faverouble light possible. Just to put things in perspective I want to mention a few facts:

1. The only factor of real importance for the Con-Lib coalition is pure desperation. Not one of the other big state in Europe is in such a dire fiscal situation. To discribe that as ‘neccessity’ is in my eyes a prime example of understatement.

2. Britain is not a role model for fiscal reform and definitely not at the cutting edge of the whole movement towards fiscal reform especially in Europe. If you view harsh austerity meassures as favourable and you need a role model just take a look across the Irish sea. Furthermore, among the major economic players in Europe it was Germany that put the whole issue of fiscal dicipline on the political agenda … at a time when the former government was singing the high song of John M. Keynes. Gorden Brown even condemned the Germans as reckless and counter-productive for the global economic recovery.

3. Last but not least, please lets not forget that the radical character of the reform policy in Britain is the direct result of a flawed economic policy centered around financial liberalisation and a massive expansion of the state. Therefore, the current course is clearly a reaction to the fiscal outfall of this policy. Interestingly the countries in Europe that were following this model (The Blatic states, Hungary, …etc.) are the ones that suffered the most in the economic crisis.

Therefore, the real audacity is the conclusion of the article:
“But pretty soon, as in Europe, somebody will have to come up with one—and Britain, for better or worse, is likely to be the place they will come to for ideas.” This creates the impression to me that Britian, even in its grand failures, is a role model for the US and Europe.

Hmmmm, I wouldn’t be surprised if many goverments in the future will not visit London, but rather turn their eyes to Dublin or Berlin if they need advice on austerity meassures or a sound economic policy!

Edgardo Rex

The point to remember with the conservative party is that many of them are classically educated, and are taking their inspiration for their current policies from historical events. If you read Boris Johnson's "The Dream of Rome" you understand some of their aspirations, particularly when he highlights that the Roman Empire survived for hundreds of years with a minimal army and minimal bureaucracy. To the conservative mindset bureaucracies are stifling to business and innovation and as the Roman Empire showed, unsustainable in the long run. These policies underscored in the article as radical are, in a historical context, arguably proven to be pragmatic


It looks like Mr. Cameron is actually taking a look at the bigger picture here. He's making reforms, budget cuts, and is genuinely making an effort for meaningful economic results. I admire his grit.

Actions like this coming out of UK don't surprise me, radicalism is a part of the British culture; I mean these are the people who created the Magna Carta, gave birth to "The age of enlightenment" and introduced us to the Beatles.



"Canada is heading down the same path of untouchable public sector unions and a voting public which seems to cry in unison, " the government should do something about that". I hope viable solutions will come out of Britain to light our way very soon. I even offer one of my own."

Really, I thought Canada already gone through a period savage cuts in 1990s. What the Harper government is doing is Keynesian Economics, it's ironic, but true.. Much of what the UK is doing now is based on the Canadian approach of the 1990s. However,recently the Canadian press had analysis of why it's going to more difficult for the Brits to do what they are doing now, then what Canada did in the 1990s.

1) They are cut backing when the world economy looks like its going into a slow economic recovery. They can't pig back like Canada did in the 1990s.
2) They were dependent on Real Estate and Finance. It will take a long time for these to recover
3) They have a coalition government. Whereas in Canada, the Liberals had a majority government, helped by a divided right.

It looks radical, but even by 2015, the UK budget will still be in deficit. I think the biggest mistake was putting a ring around the NHS. Because of that there will savage cuts in defense, education etc. Sooner or later they are going to touch the NHS.


"Do it the Chinese and Indian way. Let people learn to support themselves or depend on their families, not the state"

Interesting idea, it might actually bring them closer together, which has been the main part of the problem of social decline.



"Fair enough. But health care should not be view as an entitlement but a right."

Honestly, I have not made up my mind on that subject.



Why should Britain strengthen the EU, when the Greek crisis revealed the EU has almost third world like standards in regards to competence and corruption.

You think the world doesn't know the Greeks cheated on their budget numbers for 10 long years and the EU was so incompetent, it allowed it to happen. Thats so third world.

The EU should first stregthen its competence and prove itself worthy of stregthening.


The AngloSaxon should stop voting against Human rights issues in UN such as making Access to Clean Water to qualify as doing anything radical.


The Brits can hopefully slow down its descend, and in the meantime they should strengthen the institution of Europe if they want to stay relevant in a future world. Otherwise joining as the 52nd State is not a bad idea also.



"I agree hard work and achievment are not guarantees of anything, but entitlements are certainly not guaranteed without them."




One famous English proverb says;

"Neccessity is the Mother of Invention"

Does Tony Cameron any other choice but to innovate ?

Nonetheless, I congratulate him for his resourcefulness




I am not against social security. I think too it was one of Roosevelt's greatest achivements.

I was replying to a poster who said defense was a sacred cow and merely wanted to point out the defense is a small portion of the budget each year compared to social programs.

But however, you should know that all US citizens over 65 will get social security benefits regardless of whether they worked or not. I think thats fine amd I am not against it all.

For example, if recent US citizens brings in their parents from another country to USA, and those parents become US citizens they are entitled to social security benefits when they reach 65.

So, it doesn't necessarily mean you have to work to get it.


An inefficient public sector with 4 weeks paid holiday, an unfunded pension scheme, staff that do little and rates of sickness 2 to 3 times the national private sector average are a problem. This sets conditions in general employment market, that private sector firms cannot match for the less skilled. The effect is to push up wages generally and therefore increase unemployment in the private sector. What happens next, more private sector firms close, increasing demand for dole or more public jobs, hey the government can then borrow more or raise taxes again, and so on.

The drive should be to cut waste, so that services can be provided at a lower unit cost. The saved tax money can then be used to re-employ these people through grants and other financial encouragements in the private sector or in the provision of more public services at the same initial tax cost.

The current policy model of borrowing from Asia and MESA, to make public jobs (often that provide no real service) and living off a housing boom was bound to end in tears. We must cut unit costs, for public provision, where the private sector can provide outsourcing at a lower cost it should be used. Wages generally, are inflated from borrowing overseas, wages will need to fall or value added increase and we will have to produce goods and servcies to sell.

Even if we wanted to return to that borrowing model the source of that borrowing are likley to dry up, Asia is ageing and will consume more in the future, this will reduce their savings glut and MESA is running out of oil (possibly) and this will reduce their surpluses. The cost of borrowing will rise and they will be less keen to lend us money they are unlikely to get back at full value; as we inflate our way out of debt.


Good luck Britain!

Imagine we have a generation of UK politicians that may have a moral compass and shine a light for the free world.

Yet the Economist plods on day to day bogged down by a Fabian socialist past. Can we start with dropping the apologies for the cronies and bureaucracies that support EU-UN imperialism and protectionism?


Quite agree that the new national coalition gov't has proposed a refreshing devolution of (some) powers back to local councils and/or private civic groups. From an American libertarian's point of view, British gov't powers are very much concentrated in London.
Hope Kroneborge was thinking of Republican Representative Paul Ryan's "Road Map," a detailed (in political terms) fiscal outline to reduce government spending and total debt.
I quite disagree that the fiscal solution must include BOTH higher taxes & lower spending; historic post WWII tax receipts in America hover around 19%, regardless of tax rates. A VAT would doom U.S. to European GDP growth rates; follish with real population growth.
We simply need to control spending by reforming entitlements

Best Regards,





Sherry Black is clearly misinformed/or pretends not to know. Social Security has nothing to do with the budget. Look Sherry, it is a savings program. You pay into it over many years, when you retire it is paid back to you with interest. Than, should you live long enough (like me) you can actually make a small profit. The best program the U.S has EVER devised. And, may I add, the best run also. Administration costs are only 2%. That's better than any corp. can do. I await your informed reply.



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