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This Budget kills recovery at birth - David Blanchflower

LauraW10
Posts: 400 Forumite
As a result of this reckless Budget the UK will suffer a double-dip recession or worse.
So Slasher slashed. He failed to heed the warnings that this was the moment to stimulate growth rather than destroy it, most recently from the president of the United States. In a letter to fellow leaders of the G20 nations, Barack Obama warned that while it was important to put in place credible plans to cut deficits, withdrawing fiscal stimulus so early could endanger the fragile economic recovery. But to no avail. George "Slasher" Osborne was not for turning.
I am now convinced that as a result of this reckless Budget the UK will suffer a double-dip recession or worse, not least because there is no room for interest-rate cuts, although lots of additional quantitative easing (QE) from the Bank of England could soften the blow. As the acting leader of the opposition, Harriet Harman, said in Labour's response: "This Budget isn't driven by economics. It's driven by ideology." It will indeed be bad for jobs, as she rightly argued. Interestingly, Harman pointed out that the area least affected by the so-called austerity measures will be Cheshire, home to the Chancellor's own constituency, Tatton. Politics, like sausage-making, is not pretty.
http://www.newstatesman.com/economy/2010/06/public-sector-budget-obr
If you keep doing what you've always done - you will keep getting what you've always got.
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Comments
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Next time try and pick a decent news source.0 -
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Blanchflowers Wife left him for another woman. What a pathetic little man.0
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It's actually quite a good article where he sets out his concerns and backs it up with relevant data - better than some of the usual sensationalist carp posted here by lazy journalists looking to fill column inches.
There are definitely big question marks over this ConDem assumption that the Private Sector is going to somehow pick up the slack from the massive cuts and job losses that will be incurred over the next few years.0 -
Christ. How can people ignore the 800lb gorilla in the room?
Party politics aside, the UK owes a trillion pounds (£1,000,000,000,000). Our annual overspend is £160bn. All of this debt is paid back with interest.
What would you do? Borrow more to create a false boost to the economy? What do you think will happen to Sterling if our debt crosses 100% of GDP?
Have a look at the Debt Free Wannabe's forum. Imagine someone posting who owes a million pounds, and is overspending by £10,000 per month. What is the correct response?
a) Borrow even more, and hope that you can invest the borrowed money in money making schemes to pay off your debt?
b) Reduce your outgoings, sell assets and tighten your belt and try to reach a positive cash flow so that you can service your debt?
Cuts are going to hurt. Our public sector was artificially inflated to keep the good times going.
Why is this so contentious?0 -
It's actually quite a good article where he sets out his concerns and backs it up with relevant data - better than some of the usual sensationalist carp posted here by lazy journalists looking to fill column inches.
There are definitely big question marks over this ConDem assumption that the Private Sector is going to somehow pick up the slack from the massive cuts and job losses that will be incurred over the next few years.
It is a really good article.
I suppose many posters have a closed mind and only want to read material that supports their view point.
They have Blind Faith for sure.If you keep doing what you've always done - you will keep getting what you've always got.0 -
Bullfighter wrote: »Christ. How can people ignore the 800lb gorilla in the room?
Party politics aside, the UK owes a trillion pounds (£1,000,000,000,000). Our annual overspend is £160bn. All of this debt is paid back with interest.
What would you do? Borrow more to create a false boost to the economy? What do you think will happen to Sterling if our debt crosses 100% of GDP?
Have a look at the Debt Free Wannabe's forum. Imagine someone posting who owes a million pounds, and is overspending by £10,000 per month. What is the correct response?
a) Borrow even more, and hope that you can invest the borrowed money in money making schemes to pay off your debt?
b) Reduce your outgoings, sell assets and tighten your belt and try to reach a positive cash flow so that you can service your debt?
Cuts are going to hurt. Our public sector was artificially inflated to keep the good times going.
Why is this so contentious?
Have you even read the article?
The point is that crashing the economy means that we will have less money to pay back what we owe so the deficit will actually be higher under the Coalition.
Why is that so hard to understand?If you keep doing what you've always done - you will keep getting what you've always got.0 -
Bullfighter wrote: »Why is this so contentious?
After 10+ years of living in cuckoo land, the public are faced with the bill. This day was always going to come, but they weren`t prepared. All they want is to put it off until tomorrow. I`ve seen this with individuals, and we are now seeing it in the wider economy.
When the drinks are flowing, not many people worry about the hangover.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0
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