Brown warns that economic storm is not over

Graham_Devon

Prime Minister Gordon Brown has warned Britain of economic "bumps in the road" ahead but vowed "we will weather the storm together".
And in a pre-election swipe at his political rivals, he said "now is not the time to turn back", adding: "I will not let you down".
He also said the Budget would be in "two weeks' time" and confirmed a pay freeze on senior public employees.

http://news.bbc.co.uk/1/hi/uk_politics/8558821.stm

One of the things I did pick up on is Brown talking about job creation being one of the most important things to keep the recovery going.

However, they are talking about big job cuts basically in the public sector after the election. Well I say that, they are talking cuts, not cutting jobs, but I think we all know when you cut, jobs go.

"We have got through this storm together, but there are still substantial risks ahead, there will be bumps in the road and I believe the only way to overcome them is by displaying the same strength and resolve that we did during the crisis and I will not let you down."

Scary stuff! Does this mean more of the same if needed?

lemonjelly

1 keeping people in jobs & creating jobs for the out of work puts money in pockets.

2 Money in pockets = rising tax receipts for the exchequer + consumer spending on the high street.

3 Increased Consumer spending = job creation & investment. Go to 2.

Easy this economy malarky!

worldtraveller

Would one of those "bumps in the road" be a fall back into recession later this year? I think so!

Really2

worldtraveller wrote: »

Would one of those "bumps in the road" be a fall back into recession later this year? I think so!

Well the snow did cause some potholes around here (we all know everyone loves a good snow conspiracy)
Not sure we will get 2X 1/4 of negative TBH, this 1/4 could possibly be.

purch

If splashing around in very deep and fast running water, just keeping your head above the waves counts as a recovery :eek:

Spartacus_Mills

Graham_Devon wrote: »

http://news.bbc.co.uk/1/hi/uk_politics/8558821.stm

One of the things I did pick up on is Brown talking about job creation being one of the most important things to keep the recovery going.

However, they are talking about big job cuts basically in the public sector after the election. Well I say that, they are talking cuts, not cutting jobs, but I think we all know when you cut, jobs go.

Scary stuff! Does this mean more of the same if needed?

Is he managing expectation for the slump in the first quarter growth figures ?

I see this as Brown being honest about the risks ahead and the state of play. It is more of the same if needed for the time being.

Jobs are going to go with cuts, it is inevitable. The Public Sector is going to feel the pain the private sector has felt for the last 2 years but they still have their massive redundancy pay offs to cushion the blow.

doire_2

Imagine another term with him in charge :eek:

Kohoutek

lemonjelly wrote: »

1 keeping people in jobs & creating jobs for the out of work puts money in pockets.

2 Money in pockets = rising tax receipts for the exchequer + consumer spending on the high street.

3 Increased Consumer spending = job creation & investment. Go to 2.

Easy this economy malarky!

Except that step 1 is not possible in a long term deflationary environment, where banks are lending less, and consumers, corporations and governments are paying off debt. In our monetary system, all money is a form of debt. If there is less debt, then there's less money and the economy is contracting, not expanding, meaning fewer jobs.

Pennywise

The key is spending money wisely, cutting all the non-essential jobs and prserving/increasing the essentials. How about spending the same, but, say, cutting the "non jobs" such as in the ever increasing quangos, five-a-day co-ordinators, etc., and spending the savings on tangible productive jobs, like infrastructure such as road repairs/building, public transport, etc. By all means lets preserve/create jobs, but let's see the tangible benefits of them, i.e. roads or buildings rather than papers in files.

moggylover

lemonjelly wrote: »

1 keeping people in jobs & creating jobs for the out of work puts money in pockets.

2 Money in pockets = rising tax receipts for the exchequer + consumer spending on the high street.

3 Increased Consumer spending = job creation & investment. Go to 2.

Easy this economy malarky!

In theory;):D

kennyboy66_2

Pennywise wrote: »

The key is spending money wisely, cutting all the non-essential jobs and prserving/increasing the essentials. How about spending the same, but, say, cutting the "non jobs" such as in the ever increasing quangos, five-a-day co-ordinators, etc., and spending the savings on tangible productive jobs, like infrastructure such as road repairs/building, public transport, etc. By all means lets preserve/create jobs, but let's see the tangible benefits of them, i.e. roads or buildings rather than papers in files.

This is a bit of a Daily Mail fantasy. Any meaningful cuts will be in real jobs.
That may mean teachers (or teaching assistants), Doctors or Nurses.

It might mean the NHS doing less
ie leave stop smoking programmes to the private sector, to be paid by smokers (a bit like Weightwatchers).
Or not fund fertility treatment, or make waiting lists longer forcing people to go private.

I'm sure there are 'non-jobs' as you describe them but perhaps £5 bn could be saved.

The annual deficit is £180bn.