Has the UK economy been handled better than the rest of Europe?

Ron2256

Degenerate wrote: »

They kept their powder dry and it was there when they really needed it, post-Lehman. I don't see that as having been a mistake at all.

It's an old prejudice that some people cannot shake off, the idea that production is virtuous and consumption is sinful. The fact that it takes two to tango, you cannot have one without the other, that our consumption allowed their production to flourish in the first place, is overlooked.

Imbalances are never a good thing, they always have to correct in the end, but what is happening now demonstrates that we were on the better side of the imbalance - it isn't too painful to cut our consumption of imported goods. That doesn't make us guilty and them innocent victims, it makes them unwise to have relied on foreign demand.

That's an interesting concept. I have to say I am guilty of this 'old prejudice'. I am a bit old fashioned.
So, in a way, you are saying that it is best to have an economy based on consumption rather than manufacturing. My question is, how can this work long term?
If you rely so much on import and export very little, you are just going to get a huge trade deficit.

SGE1

Ron2256 wrote: »

That's an interesting concept. I have to say I am guilty of this 'old prejudice'. I am a bit old fashioned.
So, in a way, you are saying that it is best to have an economy based on consumption rather than manufacturing. My question is, how can this work long term?
If you rely so much on import and export very little, you are just going to get a huge trade deficit.

...which is only a bad thing if you're able to produce the goods you import at a lower cost. But not every country has been dealt the same natural resources, the same skilled labour etc...

inspector_monkfish

Homer_Simpson wrote: »

Britain is definately not the worse off. Spain seems to have been hit harder while France and Germany for example are better off, imo. So i would say they did an ok job.

germany are deeeep in the doo-doo matey !!

inspector_monkfish

Homer_Simpson wrote: »

Germany maybe as well. We are all guessing at the moment so nobody knows for sure yet.

see this earlier thread my friend

http://forums.moneysavingexpert.com/showthread.html?t=1689879

Sapphire

Entertainer wrote: »

Are you serious?

I'm amazed that someone of the undoubted intelligence of Gordon Brown could have been so neglectful of macroecomic policy. This underlines the fundamental point about New Labour- they were always obsessed with fiscal policy- tax and spend and redistibution of income- monetary policy and macroecomic stability was taken for granted and ignored.

Whilst Brown may be getting into his stride now in addressing these issues, the fact that he made these errors is something that history will judge him for.

Well, the last few days revelations have revealed why nothing was done to prevent the horrendous economic mess we are in – it is surely at least partly because the MPs had a vested interest in wishing to prolong house price rises, a policy that has proved economically disastrous for this country and will ensure real hardship for many people for years to come.

Homer_Simpson_3

inspector_monkfish wrote: »

germany are deeeep in the doo-doo matey !!

I know that Germanys GDP will decline much sharper, but i think you also have to take other factors into account like

• Britains 'banana republic' budget deficit
• HPC
• personal debt
• devaluation of the pound
• GDP decline converted to Dollar

Take those all into account and suddenly Germany doesn't look much worse off (if at all).
I don't think GDP is everything.

StevieJ

Ron2256 wrote: »

That's an interesting concept. I have to say I am guilty of this 'old prejudice'. I am a bit old fashioned.
So, in a way, you are saying that it is best to have an economy based on consumption rather than manufacturing. My question is, how can this work long term?
If you rely so much on import and export very little, you are just going to get a huge trade deficit.

I think he mentioned balance somewhere along the line :rolleyes:

StevieJ

Homer_Simpson wrote: »

I know that Germanys GDP will decline much sharper, but i think you also have to take other factors into account like

• Britains 'banana republic' budget deficit
• HPC
• personal debt
• devaluation of the pound
• GDP decline converted to Dollar

Take those all into account and suddenly Germany doesn't look much worse off (if at all).
I don't think GDP is everything.

Tell you what, leave it to Lisa

StevieJ

Sapphire wrote: »

Well, the last few days revelations have revealed why nothing was done to prevent the horrendous economic mess we are in – it is surely at least partly because the MPs had a vested interest in wishing to prolong house price rises, a policy that has proved economically disastrous for this country and will ensure real hardship for many people for years to come.

Where can I find a shaking head in amazement that people actually come out with this
sort of crap Smiley :eek:

Generali

StevieJ wrote: »

Where can I find a shaking head in amazement that people actually come out with this
sort of crap Smiley :eek:

Found one!


Or there's this for an animal theme: