Gordon Brown hints at tax cuts for poor

http://www.guardian.co.uk/politics/2008/nov/14/gordon-brown-world-economy

Summary

Gordon Brown, the prime minister of the UK, went to NY last weekend to discuss about the global economy, which is sliding deeper into recession. Brown had a meeting on Wall Street together with the leaders of the world’s leading 20 economies. The prime minister said that there is need for a ‘’fiscal stimulus’’ and that it is really urgent, therefore Brown build up the four-point plan to come to this goal. The four-point plan includes: cutting taxes, fixing problems in the international financial system, pumping more money into the IMF and an end to the deadlock over world trade. Most important part will be the tax cut. Brown believes that a tax cut may help to provide a higher public spending. The tax cut would especially be used for the poorest in society, because they could help the economy by spending the extra money.

 

Opinion

Some people believe that the tax cut will not help the economy out of the recession. They think that when people have the money to spend, they will actually save it. Especially because of inflation, which is a worldwide problem at this moment. Some people will wait for a better time to spend their money and therefore save it till then. I don’t agree with this thought. I think Brown have a good point, when it comes to cutting tax. The crisis proceed from the fact that people aren’t able to save their money but they just want to spend it and when they don’t have it they will ask for a loan. People aren’t able to save their money any more. Therefore I think the tax cut will help. People, especially the poor ones, have left the money to spend and I think they will. It will help to bring the economy out of the recession.