UK economy suffers 0.5% contraction

On top of the VAT rise, we've still got all of those public sector job cuts to come.

Hampshire County Council is about to start axing 1,200 jobs, there are similar job cuts / budget cuts to councils all over the country which haven't begun to have an impact yet.

It doesn't bode well for the near future.
 
Growth for YEARS has been based on increase government spending, which came directly from borrowed money.

We've been heading for another worse recession ever since Labour borrowed their way out of the last one and people have been suggesting that since before they bought their way out of a recession.

The first recession was caused by Labour borrowing too much to sustain our economy, did anyone think borrowing a larger amount would fix that problem, seriously?

The problem is, if for every job lost you create a new job in the public sector, you hide the unemployment, and make it harder to generate new jobs because no one was working towards encouraging business and building new real growth.

We both need to remove all these people from the public sector, paid by borrowed Chinese money, and generate new jobs, except, there really aren't many/any new jobs and we're basically screwed.


World economy = ponzi scheme, its not a good system, its barely functioning, it ONLY works with continued growth and increased tax income from increased actual income. Meh.
 
Well the problem is that this sort of thing is happening everywhere. The only reason it is hitting us harder is we have a massive debt that the government wants to get rid of. The money borrowing caused all these problems.
 
drunkenmaster said:
The first recession was caused by Labour borrowing too much to sustain our economy, did anyone think borrowing a larger amount would fix that problem, seriously?
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No it wasn't.

It didn't help trying to manage or mitigate the impact.

However, Labours public spending did not create a world wide financial downturn.

They aren't that inept.

drunkenmaster said:
World economy = ponzi scheme, its not a good system, its barely functioning, it ONLY works with continued growth and increased tax income from increased actual income. Meh.
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Yup. Lap it up. :D
 
vonhelmet said:
It takes a long time to turn an aircraft carrier around.
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They aren't turning it around.

They are nudging it slightly off its previous course to a mildly better one.

It we are speaking in analogies. UK public spending still has serious long term problems. Ie it is still going to be a problem.
 
WHAT!!! said:
They had a pay review which took them almost a year to do and only came back to us to say we think we are paying you enough, will be no pay rise, we may offer everyone an extra bonus on performance over a perioud of time.
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I believe that a lot of big companies will take advantage of the recession, they know you (probably) need the job and will (at least) think it would be hard to get another, so will take the pay freeze...

if your company has 10,000 employees and they don't give a pay rise to 9,950, that a lof of extra bonus for the top tier...

our company does the same, no pay rises for the workers, more profit = more money in bonus' for the guys at the top...
 
Biohazard said:
They aren't turning it around.

They are nudging it slightly off its previous course to a mildly better one.

It we are speaking in analogies. UK public spending still has serious long term problems. Ie it is still going to be a problem.
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That only furthers my point.
 
Not surprised with the snow and lack of consumer confidence in the coalition government's economic skills. How much was down to snow we'll find out when the results for Q1 2011 come out as generally speaking any money lost as a result of snow is made up for afterwards.
 
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