This Budget kills recovery at birth - David Blanchflower

kabayiri

Perhaps we are being a bit naive here.

The Tories (aided a little by the LibDems) may see this as a once in a generation chance to push back the Labour ideology implemented over the last dozen years.

They have the reins, and they have some powerful debt figures to support their arguments, so why shouldn't they? I know I would.

The structure of a lot of public spending is going to change significantly over the next few years. It will surprise no one that a few companies (like Crapita et al.) might do very well out of all this change.

michaels

Whilst I don't normally agree with your spin driven agenda I think it would have been appropriate to refer to Eire at this point where GDP is falling more quickly than they are able to cut expenditure resulting in them being unable to reduce the deficit even as the debt to GDP ratio balloons.

LauraW10 wrote: »

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?

Bullfighter

michaels wrote: »

Whilst I don't normally agree with your spin driven agenda I think it would have been appropriate to refer to Eire at this point where GDP is falling more quickly than they are able to cut expenditure resulting in them being unable to reduce the deficit even as the debt to GDP ratio balloons.

Ireland is not a very good example (neither is Greece) since they have no control over their currency.

Bullfighter

Blanchflower rejected this analysis, saying the business leaders "are not economists."
:rotfl::rotfl::rotfl:

Hardly a damning indictment.

Next he will be describing economics as a science.

Idiot.

StevieJ

There must be a something in the water at Knutsford, in 1970 they provided a chancellor (Anthony Barber) who presided over one almighty boom and now we have one who will preside over one almighty bust :eek: BTW it does give a clue to how the Tories would have behaved if they had been in power during the noughties credit expansion

His appointment prompted Harold Wilson to remark that it was the first time that he had realised that Heath had a sense of humour. In line with the, initial, liberal instincts of Heath's 1970 government, he oversaw a major liberalisation of the banking system under the title of 'Competition and Credit Control', leading to a high level of lending, much of it to speculative property concerns. In his first Budget in March 1971, he proposed to replace purchase tax and selective employment tax with value added tax, and also relaxed exchange controls; both were prerequisites to membership of the EEC. VAT came into force in 1973 at a standard rate of 10%. A year later, the rate was cut to 8%

Here is a good one that explodes the Tory myth

Barber did not seek re-election at the general election of October 1974, and left front-line politics. For some years he was often referred to as "The Demon Barber", by Conservatives as well as former opponents. It was admitted then that he had inherited from Labour the biggest trading surplus ever recored and had left the economy in its worst state since the war.

tomterm8

angrypirate wrote: »

Sorry, you are right, but let me put it this way.

He writes for the Mirror and the Guardian, and was appointed to the MPC by Brown. I am sure he has no political leaning at all.

The problem with such a view is that the last labour government got rid of him as quickly as they could... because he spent large parts of his time on the MPC publically criticising their economic policy.

chucky

typically, the usual Tory and Coalition bots are trying to fly their respective Party flags and see them as untouchable...

the budget could kill any recovery quite easily so as much as the Labour policy could have caused the economy further issues further down the line....

whoever thinks that is not the case is a bit simple...

apologies for being so blunt

Bullfighter

There is no economic recovery to kill off.

We could kick the can down the road, but we will end up with a bigger can and be standing in the middle of a busy motorway.

chucky

Bullfighter wrote: »

There is no economic recovery to kill off.

We could kick the can down the road, but we will end up with a bigger can and be standing in the middle of a busy motorway.

so we're still in recession then??

Generali

Why do people imagine the Irish Government slashed spending? Is it:

- To screw the economy
or
- Because they were running out of places to borrow money?