BELFAST, Northern Ireland -- British Prime Minister David Cameron is calling for reinforcements to help him deal with the country's massive debt, which has been caused by nonstop spending, severe recession and declining tax revenue. According to the UK's Centre for Policy Studies, at the end of 2008, the national debt was 1,340 billion pounds ($2,090 billion USD), which was 103.5 percent of GDP. This figure includes all the public sector pension liabilities such as pensions, and Private Finance Initiative contracts. It's likely that figures for last year will be even more alarming.
Cameron has commissioned Sir Philip Green, the multibillionaire owner of Britain's Topshop women's clothing stores, to help cut spending. Sir Philip is described by the London Times as an "ostentatious businessman" with "a reputation for making brutally effective commercial reforms." Effective is what is most needed here, given the ineffectiveness of government to break from its addiction to spending and the public's satisfaction with receiving other people's money.
While the Value Added Tax is scheduled to increase from 17.5 percent to 20 percent on Jan. 1, government expenditures long ago exceeded income and crossed into the realm of the ridiculous. In America, government spending has only reached the outrageous. The ridiculous British expenditures as detailed by the Department for Communities and Local Government include: 12,948 pounds for catering at Manchester United football games; 500 pounds spent at Majestic Wine Warehouse; 1,673 pounds to Stress Angels, a company that offers onsite corporate massages.
As in the United States, this is only the tip of the fish and chips. Sir Philip's real challenge will be to channel former Prime Minister Margaret Thatcher and begin the dismantling (again) of the British welfare state and the sense of entitlement that has gripped this increasingly socialist economy. People here are beginning to "get it" that they can't go on with attitudes, practices and spending that government can no longer tolerate.
Sir Philip's commission is to present a spending review to the government by October that will recommend cuts in virtually every government program and agency. He is not likely to be universally popular as opponents of any cuts will be vocal and use the media megaphone to persuade the public that children will starve and the elderly will be evicted from their homes. Sound familiar?
Cal Thomas is co-author (with Bob Beckel) of the book, "Common Ground: How to Stop the Partisan War That is Destroying America".
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