Brown is Fiscally Illiterate – Fact Checked
Gordon Brown’s statement that the Defence Budget has gone up every year is Fiction. That is the fact. Cathy Newman also describes Brown’s use of “near cash” terms as “Fiscally Illiterate“.
So during PMQ’s Gordon Brown has uttered yet more Brownies and yet again he will get away with them unless both Cameron and Clegg hammer him again and again at PMQ’s about this.
It is time to get the gloves off and call a Liar a Liar, none of the pissing about, some direct straightforward words that any Tommy, Dick and Harry will understand, no more disingenuous, no more being economical with the actualité, no more revelation of a totally fissured and dysfunctional government, no more Brownies, call them what they are in reality LIES.
Only then will the public begin to understand what this man has done to Britain, He has turned this one geat nation into Broken Britain, and he wants, by any means, to have Five more years to destroy it totally. He tried to tell us this morning that he wouldn’t let us down, sadly this is yet another of his reworked phrases, he told us this back in 2007 at his first Labour Conference as Prime Minister, and even more sadly he has not just let us down, he has totally bankrupted this Country, to try and say he won’t let us down down is beyond belief.
This is no time for a Broken and Discredited Prime Minister and his Broken and Discredited Government.
Let’s just look at a it more of what Cathy Newman tell us about Gordon’s Lies:
The analysis
In real terms – i.e. taking account of inflation – Gordon Brown is wrong. Figures given to us by the Ministry of Defence (see table below) show the defence budget fell year-on-year in real terms on four occasions since 1997 when Labour came to power – in 1998, 1999, 2002 and 2007.
Worse, the defence budget also fell below 1997 levels (again in real terms) on four occasions – 1998, 1999, 2000 and 2002.
“Near cash”
The MoD says Gordon Brown wasn’t talking about real terms growth, but was instead referring to “near cash” rises in the defence budget. “Near cash” is the simplest form of the military budget, the most basic cash figure – without inflation or depreciation taken into account.
According to the Institute For Fiscal Studies, inflation has to be factored in to make spending comparisons meaningful. So Brown was at the very least playing fast and loose with the figures by ignoring inflation.
Wrong again?
However, Gordon Brown also stated today in the Commons that the “expenditure of the Ministry of Defence has been rising in real terms under this government”. Taking him absolutely literally, “this government” was elected in 2005. But here he is also wrong. As we’ve seen just now, spending fell in real terms in 2007.
FactCheck likes a belt and braces approach, so we called several experts – including Mark Stoker, a military economist at the International Institute For Strategic Studies.
He pointed out NATO also provide accounts on defence budgets, and he reckons these numbers are more accurate.
Still falling
Looking at the NATO figures, the defence budget fell from £34.4bn in 2007 to £32.8bn in 2008.
“If you look at Nato’s figures Gordon Brown’s statement is incorrect,” says Stoker. “Either way, both sets of data indicate that the budget has not risen every year.”
Cathy Newman’s verdict
Defence spending has gone up in “near cash” terms, but it’s fiscally illiterate to use this measure, and the former chancellor knows it. The government is on firmer ground when it points out that the departmental budget is 10 per cent higher this year than in 1997, but FactCheck has established that Gordon Brown’s central claim that the defence budget has gone up every year is fiction.
This is Cathy Newman checking the facts, what she doesn’t mention that these are using figures compared against standard inflation, Sadly Defence Industry Inflation is much higher (5-10%) than normal inflation.
via The FactCheck Blog – Brown gets defensive about budgets.









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