Soldato
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There has barely been more than a year, since 1960, where spending hasn't increased.
What?
Condems have run up largest ever UK Debt
- Thread starter MrMoonX
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What?
And?
Larger population, more rules, regulations, higher wages etc.
That is not the same thing as increaisng spending for nothing.
Ok, but think about what you're effectively saying. You're arguing that taxes should be cut during a boom, when more people can afford to pay more, when a recession or a crisis hits, you will have no room for fiscal adjustment. If you introduce austerity during a boom, and you cut spending, raises taxes, then when a recession hits, you are in a much, much better position to do what you will have to do regardless, i.e. increase spending to stimulate demand, and you cut taxes.
I atrribute the lack of economic growth to the reblancing of the UK books, previously we had an over inflated economy built on a bubble in the housing market.
The increasing cost of living is indeed due to the changes in the global economy from oil to grain, it's exacerbated in this country by the requirement for the goverment to continue to increase taxation due to iniability of the coalition to actually cut spending, the money has to come from somewhere.
An economically inactive population is a combination of the 'benefit trap' where benefits pay more than minimum wage, the mass migration of easter europeans can show that there are jobs there for the taking, it just makes no financial sense to do so. This continues further to the mismangement of education with a complete lack of focus of what our economy requires. Record university graduates, record youth unemployment... complete lack of young skilled labour coming through that's being creid out for.
yes the greedy bankers who broke the world enconomy and took billions of tax payers money to pay themselves massive bonuses
I really dont know why your making it party political labour were rubbish, tories are evil rich kids playing with daddies money - swings and roundabouts. In fact all politicians are stupid rich kids with no idea what life is really like for the majority in society
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Soldato
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The banks arn't the reason why the western world is in debt, it was the straw that broke the camels back but we have all been getting into debt for a long time by not exporting enough and simply importing everything from China.
If it was the banks then why does Chinese government have more cash than it knows what to do with? Their banks had to deal with the USAs crap credit rating system aswell.
America doesn't collect enough tax from the rich imho which is their main flaw, Britains public sector and spending got a bit out of hand in the last 10 years.
Both countries will sort it out and sadly it's going to take a few years yet.
If it was the banks then why does Chinese government have more cash than it knows what to do with? Their banks had to deal with the USAs crap credit rating system aswell.
America doesn't collect enough tax from the rich imho which is their main flaw, Britains public sector and spending got a bit out of hand in the last 10 years.
Both countries will sort it out and sadly it's going to take a few years yet.
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You don't need to go that far, you can still cut taxes and have increased tax revenue.
You don't have to go the whole hog and cut stuff so much you lose revenue.
At the end of the day I can't see how anyone can say we would be in the same position we are in now, if Tories where in power. They would not of run up the huge debt in pen pushing jobs and other waste. Just so he could get his name in the record books for biggest boom. That was partly artificially made by him at expense of long term stability.
I agree that we can't say for certain that we would be in the same position now, had the Tories been in power. Just the same as you cannot say for certain that the situation would be worse now, had the Labour party won the 2010 general election. But you need to realise that deficits don't just belong to those who spend, just take a look at the US deficit under Reagan or Bush. Both of their administrations oversaw huge, unaffordable tax cuts that caused the deficit to explode.
Soldato
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No we weren't, the only one with that delusion was brown....
You can't be serious surely?
I think you will find loads of people that send we shouldn't of been spending and it wasn't going to last. so yes. If there still here, you could even dig up old threads. let alone analysts and articles opinions.
can we say 100% no, but I think we can safely say these things. its in the high percentage.
labor we would probably be slightly better off know in the immediate short term. they would have carried on spending and made the issue even worse. I cant see any real global growth in the next decade. which means the only sensible option is to cut and try and keep economy ticking over
at around zero. that way when we do experience real growth we can have a proper boom, unlike countries that have just hilted up to the eyeballs.
Associate
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Look up "Laffer Curve" in Google my friend.
It's definitively proven that if you raise taxes too far your revenue DECREASES and if you look at the figures released just this week you'll see that's what happened when the top tax rate went up to 50%. I'm not earning enough to pay that rate, but even I can see the futility of charging it when you're not making any extra from it.
Soldato
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Loads?, care to link me to these 'loads' of analysts predicting such an outcome? and also it's the silly false statements that annoy me, exaggerated or otherwise, saying that Brown was the only one that believed we was in a genuine economic boom is a ridiculous hyperbolic statement, the majority thought the market was on the upturn and the 'few' economic analysts that did predict it got ridiculed for it by the masses anyway, people we're on a high spending and making money and they didn't want it to end, we all have a part to blame in this, this is not solely Browns fault, people on here seem love to insinuate the Tories all knew the recession was coming and would have done things radically differently.
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Labour must be laughing their heads off, they are pretty much a dead cert to win in 2015.
They knew the money was all gone, and that winning the 2010 election would be a poison chalice, the electorate will punish the Cons for austerity, and the Liberals will be completely wiped out.
Win-win for Labour, no matter their past sins, it will all be the ConDems fault.
They knew the money was all gone, and that winning the 2010 election would be a poison chalice, the electorate will punish the Cons for austerity, and the Liberals will be completely wiped out.
Win-win for Labour, no matter their past sins, it will all be the ConDems fault.
Yes, until they realise that the Conservatives have pulled the same trick and passed the unexploded bomb to Labour. Labour will be in power when we have paper money collapse and the collapse of the current financial system (which has been guaranteed since 2007).
Soldato
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The boom and bust cycle is a natural and part of the economy, which also why I think this recession was inevitable tbh, it was just a case of when and where, and whoever was in power at the time was going to get the blame.
I don't disagree!
It was definitely a poison chalice and I think the Conservatives have done well to:
a) deflect a lot of the blame onto the Lib Dems,
b) convince the media and the voters that slashing spending is the right way to pull out of a depression, despite the mountain of evidence to the contrary (including plenty of new evidence from this country over the past few years).