30 June 2011
The Crozier Plan for economic recovery

Up to now, libertarians have been very good at telling the world what the state shouldn’t be doing and shouldn’t have done but not so good (as Brian Micklethwait is constantly reminding me) at telling the world what the state should be doing.

So, at risk of preserving constitutional government in the UK, here’s my go:

1. Abolish all employment, planning and health and safety legislation.

2. Cut all departmental budgets by 25%.  No exceptions.  If contracts get in the way change them retrospectively.  OK, there will be exceptions.  But anything more for Department A means even less for Department B.

3. Re-introduce the 1997 tax code.  If nothing else it will be a lot shorter than the current one.  But the chances are that it will be a lot simpler.

4. Abolish the Bank of England and allow private note/coin issue.

5. Abolish all bank regulation.

6. When banks go bust (as they will) honour deposit guarantees but do not bail them out.

7. Abolish deposit guarantees (when things start to stabilise).

8. Seeing as democracy - or that version that allows representation without taxation - got us into this mess; abolish it.  All voters must be net contributors to the budget.

But won’t there be strikes and riots?

Maybe, but it still has to be done.  The government has made a whole load of promises it can’t keep.  If the population would rather live in a fantasy land and express this preference through rioting then we’re doomed anyway.

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  1. Not necessarily what “the state” should be doing, and definitely not as in doing even more than it is doing now.  My question is more along the lines of: what should the rulers of the world be doing. What should these Big Cheeses be discussing at their big get togethers?

    More exactly, if you were addressing these people, what would you say to them?

    I think your answers are pretty good.

    Posted by Brian Micklethwait on 04 July 2011 at 06:14pm

  2. Would the 1997 tax code include the 10% bracket for income tax?

    Posted by Antoine Clarke on 05 July 2011 at 05:02pm

  3. I’m surprised you don’t suggest a flat tax. And I think the national debt (including off-books liabilities) has to be defaulted on.

    Posted by Antoine Clarke on 05 July 2011 at 05:04pm

  4. I rather like the income tax system they have in Hong Kong. There is a progressive tax system (with much lower tax rates than in the UK) *and* there is a flat tax of 17%. You calculate the tax payable under both systems, and then pay the lower tax amount of the two. Poor people get the benefits of a progressive tax system (but still generally pay something). Everyone else gets the benefits of a flat tax. Enough money is somehow raised that they still have roads, police, hospitals, schools, etc. (They do not have VAT, either. They do have property taxes, but let’s not go there right now).

    Posted by Michael Jennings on 06 July 2011 at 04:29am

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