Der Spiegel: The UK "A Prayer from the Death Bed"

Kohoutek

I meant that if people though the 80's were bad (e.g. the recession in the early 80s), then what is the next ten years going to be like, considering that the next government must actual reduce spending, unlike the 80's where spending kept increasing (despite the economic and social turmoil).

I wasn't trying to say that Thatcher did a great job - she just kept spending by raising money through privatisation to keep things afloat, similar to how New Labour have spent money through deficit spending and continued privatisation in the last ten years.

The next government can't increase spending through bigger deficits, nor through privatisation (because we've got nothing left). It must actually cut spending. Surely that suggests we're facing a unprecedented challenge?

Mr.Brown_4

What is it with the Germans at the moment? They seem to be having a pop at anyone - Greece, UK, and so on. Maybe a bit peeved that no one can afford to buy their cars?

I remenber when we first dropped in to Berlin, 46 I think it was, and they were rather pleased to be in the British zone where we mostly refrained from eating their babies. How about they let us get on with running our country, and let the Allies run theirs.

StevieJ

Kohoutek wrote: »

I wasn't trying to say that Thatcher did a great job - she just kept spending by raising money through privatisation to keep things afloat, similar to how New Labour have spent money through deficit spending and continued privatisation in the last ten years.
?

She didn't only waste the privatisation money she blew all our North Sea oil revenues as well :eek:

Kohoutek

StevieJ wrote: »

She didn't only waste the privatisation money she blew all our North Sea oil revenues as well :eek:

Well New Labour have blown money we don't have (deficit spending), including on wars of aggression (at least the Falklands were UK territory).

I think both fiscal policies are equally bad.

kennyboy66_2

Kohoutek wrote: »

Did you actual read the article? How is it you are so sure that things are better than 1979 when Thatcher INCREASED government spending in real terms for EVERY year except 1988, and the next government will have to DECREASE government spending in real terms for EVERY year until 2018.

Other than

Inflation at 20%
Number of strike days 20 times as high as now.
An over valued currency

everything looks pretty much the same.

UK debt was 80% of GDP in 1967, it was down to 44% by 1975 and that was with a miners strike, power cuts, 3 day week and OPEC hiking oil prices up.

We hadn't even called the IMF in at this stage!

No-one said it will be easy, but John Majors govt got the debt down to 25% of GDP, then even Labour managed to reduce it in their first 6 years of office.

It will however mean cuts in some spending were all parties are currently pledging to increase ie. health and education.

lvader

Germany has a higher public debt as a percentage of GDP than the UK.

aelitaman

StevieJ wrote: »

Actually we were doing quite well untill Thatcher got in :eek:

1976 - mid 1979 Recovery. Uncertain but positive growth; unemployment steady around 5% following a shake-out of labour; inflation failing to under 10%. Balance of payments current account again in surplus in '78, and slight gains for the ER while still remaining competitive in trade. Apparent success encouraged by 15% growth of M3 in '78, and North Sea oil coming on tap.

The IMF was doing quite well, I think you mean.

aelitaman

lvader wrote: »

Germany has a higher public debt as a percentage of GDP than the UK.

They did, they will not have in 12 months time.

Generali

StevieJ wrote: »

Actually we were doing quite well untill Thatcher got in :eek:

1976 - mid 1979 Recovery. Uncertain but positive growth; unemployment steady around 5% following a shake-out of labour; inflation failing to under 10%. Balance of payments current account again in surplus in '78, and slight gains for the ER while still remaining competitive in trade. Apparent success encouraged by 15% growth of M3 in '78, and North Sea oil coming on tap.

It seems a little incomplete to have an economic history of that period that fails to mention the IMF (who were effectively dictating fiscal and monetary policy) and the Winter of Discontent which in the end showed how and why the post war economic policies of successive Labour governments were failures.

doire_2

StevieJ wrote: »

You forgot this bit from the same article

Brown's challenger, Conservative Party leader David Cameron, is not seen by the British public to possess the necessary economic know-how to lead the country back to economic health.

So who is? Labour? :eek: Lib Dems? :eek: