When will the Government come clean...

Graham_Devon

chucky wrote: »

backtrack, backtrack, backtrack - you do make me laugh.
make a statement but now turn around and say that wasn't what you were saying :eek:

i'm not a Labour voter btw, just don't believe in your Tory mantra that they are going to be the knights in shining armour

Howcome you are never anything?

Not a bull, but side with the bulls in everything.

Not a labour voter, but side with labour in everything.

Sir_Humphrey

Kohoutek wrote: »

But why is an eventual recovery guaranteed without addressing the structural problems with our economy - i.e. too much based on consumption and govt spending.

The economy has relied too much on consumption and financial services. UK government spending is lower than in Europe, so I would dispute that assertion. Govt spending in the USA is lower than the UK, but their economy is in even worse shape than the UK.

It would be more accurate to say that the fiscal policy was too loose in the boom. But you could argue that in fact taxes should have been higher than they were (that is my opinion). However, many people claim taxes were too high back then. Well, you can only credibly have one or the other criticism; it is difficult to complain at the same time that fiscal policy was too loose and taxes too high.

The irony is that what is a mistake in a boom (loose fiscal policy) is the right thing to do in a recession (and vice versa). It is also the case that making a second fiscal mistake in the recession does not cancel out the earlier mistake, but rather doubles it.

You are not going to get a rebalanced economy without more govt intervention than you are seeing now. What else is going to restructure the economy?

StevieJ

Graham_Devon wrote: »

Howcome you are never anything?

Not a bull, but side with the bulls in everything.

Not a labour voter, but side with labour in everything.

Maybe as LIR and LJ were saying that people should take some responsibility and not blame everything on the Govt

Kohoutek

Sir_Humphrey wrote: »

The economy has relied too much on consumption and financial services. UK government spending is lower than in Europe, so I would dispute that assertion. Govt spending in the USA is lower than the UK, but their economy is in even worse shape than the UK.

I agree, it boils down to New Labour's policy of 'we're going to increase public spending, but not increase taxes' has landed us in a big mess. It spuriously seemed like it might be sustainable during the last economic boom because of increased tax revenues from the financial sector, but ultimately it was built on the assumption that prosperity would last forever.

StevieJ

Kohoutek wrote: »

I agree, it boils down to New Labour's policy of 'we're going to increase public spending, but not increase taxes' has landed us in a big mess. It spuriously seemed like it might be sustainable during the last economic boom because of increased tax revenues from the financial sector, but ultimately it was built on the assumption that prosperity would last forever.

I thought they were the masters of deception and kings of slight of hand with their stealth taxes?

Sir_Humphrey

Kohoutek wrote: »

I agree, it boils down to New Labour's policy of 'we're going to increase public spending, but not increase taxes' has landed us in a big mess. It spuriously seemed like it might be sustainable during the last economic boom because of increased tax revenues from the financial sector, but ultimately it was built on the assumption that prosperity would last forever.

Unfortunately, that is what voters want because they are cheapskates. They want European public services and American tax levels. Labour offered (slightly) income higher tax and higher public spending in 1992 and lost.

Orwell called this doublethink (holding incompatible views at the same time).

For me, the open goal on tax are property taxes - although again they would be very unpopular.

Ultimately, politicians do what they think will get them elected.

Kohoutek

StevieJ wrote: »

I thought they were the masters of deception and kings of slight of hand with their stealth taxes?

Lol, have you got nothing better to do than stupid posts like that.

OK, they didn't raise taxes as a proportion of GDP - stealth and non-stealth taxes - to fund higher public spending sustainably.

Are you feeling better? Can the grown-ups continue the discussion now?

Sir_Humphrey

Kohoutek wrote: »

Lol, have you got nothing better to do than stupid posts like that.

OK, they didn't raise taxes as a proportion of GDP - stealth and non-stealth taxes - to fund higher public spending sustainably.

Are you feeling better? Can the grown-ups continue the discussion now?

Why couldn't you just agree with him?

Butterfly_Brain

We all know that the hardest hit are going to be the lower paid and pensioners

It always is................

chucky

Graham_Devon wrote: »

Howcome you are never anything?

Not a bull, but side with the bulls in everything.

Not a labour voter, but side with labour in everything.

everything??? you stalk and think about me too much...

4 pages of posts and you say this but have nothing to say about the subject.

it must be very difficult being one of those intellectual juggernauts trying to process information