Unconventional measures that leave us all with a mess to clear up

Heyman_2

chucky wrote: »

i'd like to know the better option to QE?

letting the troubled companies go bust is not the solution.

I'm not as well educated as some on here but I guess it's a straight choice between the QE route to try and stimulate the economy (buy now, pay later) , or hiking up interest rates and encouraging people and business to save money and pay down their debts (pain now, buy later).

The problem I can see with the latter 'pain now' option (which seems to be advocated by at least one ever-present poster on this forum) is that it will further stifle an already battered economy. If everyone is paying down their debts and not spending any money, then how are businesses going to survive? And if businesses don't survive, who's going to employ people? And if people aren't employed, how are they going to save money? How will they pay down their debt? :rolleyes:

kabayiri

chucky wrote: »

i'd like to know the better option to QE?

letting the troubled companies go bust is not the solution.

:j Over here.....I know the answer

Corporation tax breaks, and big ones at that.

- especially for export led companies
- oh, and companies promoting UK tourism
- and especially R&D companies

- but NOT for banks. (I think they've had enough for a while)

This must be the right answer because I've seen it on YouTube...

Really2

kabayiri wrote: »

:j Over here.....I know the answer

Corporation tax breaks, and big ones at that.

- especially for export led companies
- oh, and companies promoting UK tourism
- and especially R&D companies

- but NOT for banks. (I think they've had enough for a while)

This must be the right answer because I've seen it on YouTube...

Tax brakes although good just means more public debt.

Would the amount it debt it caused be more than the amount of GDP it brings in?

If not it is not worth it.