What needs to happen to fix this?

nimpoppy

Any ideas what the government should actually do to fix this problem?

Although on a whole I don't like the labour government one bit because I do believe that they have gone round this problem the wrong way. They have thrown money at the problem all too late. Rather like shutting the gate after the horse has bolted. I was just wondering if anybody has any super ideas on how to actually fix these problems that we have

Really2

Shut !!!!!! up saying "it's a great time to sell" would be a start!

You are not trying to get people to sell in the worst market conditions possible for any peticular reason are you !!!!!!?

Other than that, the goverment winding bad banks down and making a "good bank" with their assets and lending direct to business and home owners "only if good bets".
Rarther than insuring siht with tax payers money.

mbga9pgf

Unfortunately, they need to cut the civil service in half.

The money they save needs to go into re-investment of long-term sustainable business models that actually PRODUCE stuff.

Reduce foreign aid to 0 until we balance the budget. Yes, its tragic, but we need to sort out our wn back yard before we move onto other nations.

We need to get rid of the namby pamby state, slash bureaucracy and legislation (HSE, working hours regs, minimum wage repealed) for small/medium businesses, slash benefits and incentivise work instead of sitting on ones @rse.

Banks and shareholders need to understand they will be paying back their dues to the state for a VERY VERY long time. Preferably with interest.

Seeing as reduced IRs havent done anything, we need to raise them to at least above the ECB rate, to stop the slide on the pound and encourage foreign savers to invest their sov wealth funds with the banks to help them with capital requirements. But, they will only do this if they see us going through the pain and making a real concerted effort of paying off debt. To that end, the government must legislate maximum loans to values on mortgages, Minimum deposit requirements, maximum unsecured lending at around 25% of the larger salary for couples and 20% for singlies; Government must achieve a balanced budget across the cycle at least, and must have a framework in place which includes items such as PFI and other off balance sheet unfundeds (public sector pensions). If it cant afford them, then state spending must be cut. If this means granny cant have a hip replacement and the average life expectancy for the country drops, so be it. Tax HPI at 90% rate for first home ownership and 95% for second home ownership and beyond. Set targets for immigration; the nation is overpopulated and needs to shrink.

Increase Tax thresholds for couples to 15000 tax free on single salary if they work full time, re-introduce joint income calcs for married couples taxation. Reduce benefits for those out of work longer than 3 years to 30 pounds a week. Individuals on benefits will have to pay for prescriptions and if they are out of work for longer than 5 years and revert to 25 pounds of food vouchers a week. No extra benefits for families with more than 2 kids with father not in fll time work. Father in full time work = extra benefits for extra kids.

QE should be used for one purpose only; pay off banks toxic debt on the understanding that these loans will need to be paid off for the next 150 years. Thus, liabilities on balance can be reduced to a much smaller payment charged at a rate of BOE BR + 1%.Pay it off in total and fully nationalize for 20 years to shake up the bank system.

People defaulting on debt need to have their rates slashed and be made clear that individuals that took out debt WILL pay it off, even if it takes them a lifetime of eating gruel. Quality of life will suffer, but bearing in mind we will be using the knowledge economy to produce stuff, we will hopefully become a nation of net exporters and hopefully start nibbling away at the humongous balance of trade we have built ourselves.

It would be tough, but bearing in mind we fought off the might of the Nazis, I am sure we will overcome. We all need to stop whining and get on with fixing this country.

Thrugelmir

nimpoppy wrote: »

Any ideas what the government should actually do to fix this problem?

Although on a whole I don't like the labour government one bit because I do believe that they have gone round this problem the wrong way. They have thrown money at the problem all too late. Rather like shutting the gate after the horse has bolted. I was just wondering if anybody has any super ideas on how to actually fix these problems that we have

The horses are still bolting. That's the government's problem. The hope must be that the measures taken will enable them to close the gate at some point in the future.
No quick fixes I'm afraid, as the "tax chain & balls" are being manufactured as I write. We've all a long sentence to serve.

Old_Slaphead

Freeze public sector spending at current levels, cut out all wasteful and none essential projects (ie nat identity cards, Olympic Games, wars we shouldn't be involved with etc etc), increase income tax (esp. for incomes over £50,000), scrap minimum wage and freeze all social security benefits. That'll do for a start.

Explain to the population that after10+ years of profligacy & 'living on tick' it will be necessary to accept a falling standard of living for the next few years. Then hunker down for 2 or 3 years of economic 'nuclear winter'.

Maybe in a few years the green shoots of a recovery based on UK self sufficiency in manuacturing will start to appear.

Thrugelmir

It would be tough, but bearing in mind we fought off the might of the Nazis, I am sure we will overcome. We all need to stop whining and get on with fixing this country.

Without the assistance of the USA, Britain was on its knees. The debt was finally repaid in 2005 ( 60 years after the war ended). Even then it amounted to 94 pence for every person in the country).

mbga9pgf

We cant increase taxes at the top end or they will all just b*gger off to oz/singapore/oceana

Old_Slaphead

Thrugelmir wrote: »

Without the assistance of the USA, Britain was on its knees. The debt was finally repaid in 2005 ( 60 years after the war ended). Even then it amounted to 94 pence for every person in the country).

We only had about 1/3rd of German war machine to contend with - the rest was busy in the Russian steppes

nimpoppy

I feel that the UK has been less likely to speak out against wrongdoings on the part of the government and other things that we were unhappy with. The french for example demonstrate against all sorts of things that they are unhappy with, right or wrong this does seem to get things done. I feel that we are being far too quiet about the mistakes that are being made.

mbga9pgf

Thrugelmir wrote: »

Without the assistance of the USA, Britain was on its knees. The debt was finally repaid in 2005 ( 60 years after the war ended). Even then it amounted to 94 pence for every person in the country).

You could argue the US used WW2 to batter the UK into submission to become the worlds leading power.
Do you know how much of our gold they took off us in WW2?

mbga9pgf

nimpoppy wrote: »

I feel that the UK has been less likely to speak out against wrongdoings on the part of the government and other things that we were unhappy with. The french for example demonstrate against all sorts of things that they are unhappy with, right or wrong this does seem to get things done. I feel that we are being far too quiet about the mistakes that are being made.

How many people would you find outside westminster chanting "Cut Benefits! Increase Taxes!" No? Thought not.... :rotfl: