How can the economy recover by end of this year...

tomterm8

I find it hard to see how any government is going to be able to restrain spending to less than 0.7% growth over the forseeable future (which is what the labour government is promising for the life of the next parliament in the budget), and get reelected. I mean, from what I remember, that's far lower growth than under Thatcher, when people were rioting.

Dan:_4

ad9898 wrote: »

Cameron will probably be more savage with public spending cuts. The issue Cameron has in his favour though is he can legitimately claim that he is trying to clear up Labour's mess when he is raising taxes and cutting spending, obviously Brown and the Labour Party can make no such claims, therefore Cameron will be given 'time' by the electorate and have a stronger mandate to do the 'dirty work'.

Yesterday Cameron attacked Brown, Darling and the Labour Party and gave the same old spin that we’ve all heard 100 times before. What we have not heard from him is how he proposes to sort this country and the economy out.

Im not a fan of Brown/Darling by any stretch of the imagination, but im afraid that Cameron will be about as much use as a pair of sunglasses on a bloke with one ear.

ad9898_3

Dan: wrote: »

Yesterday Cameron attacked Brown, Darling and the Labour Party and gave the same old spin that we’ve all heard 100 times before. What we have not heard from him is how he proposes to sort this country and the economy out.

To be fair, the Tory Party gave Brown the option of calling an election so they have a chance to sort the mess out, I'm sure Cameron doesn't have a magic bullet, however any good policies they have had in the past, Labour have nicked them and claimed them as their own, so it's unsurprising that Cameron won't give anything away until the run up to election.

Graham_Devon

Considering the labour treasury spokeswoman couldnt explain how it would recover like this last night on Newsnight, and they have more figures and departments to do this at their disposal than any of us lot on MSE put together....

I don't think anyone really knows, apart from, it seems labour have just taken the "be optimistic" route, so that when the tories come in, the tories can not live up to the expectations that labour created.

I think pretty much everything now is aimed at throwing !!!!!! at the tories when they take over the books. I honestly think that if labour now won, half the cabinet would simply leave through sheer fear of what they have set themselves up for.

Dan:_4

ad9898 wrote: »

To be fair, the Tory Party gave Brown the option of calling an election so they have a chance to sort the mess out, I'm sure Cameron doesn't have a magic bullet, however any good policies they have had in the past, Labour have nicked them and claimed them as their own, so it's unsurprising that Cameron won't give anything away until the run up to election.

Well they would want to call an election as they are desprate, as usual, to be in power.

What good policies have been nicked by Labour?

Graham_Devon

Dan: wrote: »

Well they would want to call an election as they are desprate, as usual, to be in power.

What good policies have been nicked by Labour?

The loan guarantee scheme.Tax on non doms. Green taxes on flights.Even the 10p tax situation was a stolen idea, badly implemented.

Loads more.

Even labour MP's admit it
http://www.birminghampost.net/news/politics-news/2008/07/01/labour-mp-blasts-own-party-for-pinching-tory-policies-65233-21207324/

bo_drinker

Dan: wrote: »

Yesterday Cameron attacked Brown, Darling and the Labour Party and gave the same old spin that we’ve all heard 100 times before. What we have not heard from him is how he proposes to sort this country and the economy out.

Im not a fan of Brown/Darling by any stretch of the imagination, but im afraid that Cameron will be about as much use as a pair of sunglasses on a bloke with an ear.

Roughly what I was going to say. The car thing is a waste of time only a few may benefit, they will get hit when px time comes later on I suspect . No matter what your politics are we are in the !!!!!! big time. As are other countries. No easy fix whoever is in charge

JP45

HappySad wrote: »

How can the economy recover by the end of this year when this is the worst recession since the 1920's depression???????

It can't.

Judging by the reaction in the press, there seem to be very few commentators who share the government's optimism over growth next year and even fewer who think that 3.5% growth in 2011 is credible.

I doubt whether any of the officials working inside the Treasury believe in these forecasts.

The fact of the matter is we're in one hell of a mess. As Robert Chope of the IFS pointed out this morning, the majority (I think he said 80%) of the current budget deficit is structural in nature ie it won't disappear once the recession ends.

There is no way that we can get the public finances in order through so called efficiency savings. We are going to have to (as Vince Cable pointed out yesterday on Newsnight) take a long hard look at major areas of spending and be prepared to make some tough choices. To pretend that we can avoid this and simply salami slice a bit off departmental budgets or rely on the ever elusive efficiency savings is just pure nonsense.

tomstickland

I was thinking about all of this morning and it ended up making me rather angry.
It's like someone crashing their car and then sending you the bill to fix it.

The budget was just an attempt to pretend that it was all going to be alright by using some optimistic growth figures. They don't want to make any cost cuts because it will affect the remaining core Labour voters too much.

Generali

HappySad wrote: »

... when this is the worst recession since the 1920's depression???????

It is unlikely to IMO.

My guess as to when UK GDP will rise again is end of next year at the earliest. Unemployment to start to fall 18-24 months after GDP starts rising. Unemployment to fall back to 5% in about 6-7 years time.

The unemployment part is just what we learn from history. GDP is my speculation.