After decades of run a way government spending under Gordon Brown, the newly elected leadership last month didn’t waste much time.
The budget includes a lengthy list of tax increases and spending cuts on welfare programs and government departments.
Most public sector workers except the lowest aid will endure a two-year pay freeze, while the majority of government departments face budget cuts of 25%.
David Cameron became the UK's new prime minister after the resignation of Gordon Brown, bringing the Conservatives back into power after 13 years.
The US will indeed face similar cuts in the near future and the sooner the better. Perhaps the timing of the US elections will put the US behind much of the world in terms of economic recovery, because the US is likely to continue spending under the Obama administration.
The sooner each nation faces the recession and cuts spending the sooner that nation will begin to recover. Seeing that most of the EU and now the UK turning to spending cuts shows that these nations are likely to become the economic leaders of the next decade.
Cutting spending and increasing savings is the answer. But at the beginning of the global recession the US elected a President that is the biggest spender in the history of Congress with a voting record of tax and spend, tax and spend.
The next president is going to have a major economic crisis on their hands, unless Congress can slow down the Obama spending after the mid-term elections in November.
Is it Too Late?
The UK is already in deep financial trouble as their currency has been sinking for several years, driving up inflation and weakening the value of their bonds. It may be too late to save the nation from an economic collapse. Time will tell.
The US is on a similar path and by the end of the year could also begin to see a major drop in the value of the dollar, a clear sign that things are about to get a lot worse.