Shameless labour

LauraW10

Wookster wrote: »

Did you see events across the water in Greece? In Ireland? What went wrong there?

At what stage do you think the UK would have needed to deal with the deficit?

We're not Greece or Ireland so I don't understand why you keep saying we are.

The deficit should have been dealt with slowly and without damaging confidence. That's the opinion of many economists.

The UKs "dip" has already been dubbed the UK "Austerity Recession". What's that tell you?

IronWolf

Rochdale_Pioneers wrote: »

People had started to believe the spin that we were in danger of going bankrupt. As the second recession bites, and as we watch all our competitors power away AND reduce their debt as ours increases, people will start to ask if that nice Mr Cameron wasn't talking cobblers after all

Yes, all those countries reducing their debt, like Ireland & Greece.

The strong countries, like Germany, didn't have to drastically cut spending because their deficit wasn't huge in the first place.

LauraW10

Wookster wrote: »

At what stage do you think the UK would have needed to deal with the deficit?

Wookster you seem to think the UK's Deficit is a bank loan, that the UK can simply be paid down without having any impact on other variables in the economy.

Wookster, ceteris paribus doesn't exist in the real world, when you change one variable it effects others. Sadly, when you try to pay down the deficit it impacts confidence, tax income, employment costs, etc etc....

Growth is how you pay down deficits, not cuts.

LauraW10

IronWolf wrote: »

Yes, all those countries reducing their debt, like Ireland & Greece.

The strong countries, like Germany, didn't have to drastically cut spending because their deficit wasn't huge in the first place.

Ireland always ran a budget surplus. They were fiscally responsible. It was their banks that did for them.

IronWolf

LauraW10 wrote: »

We're not Greece or Ireland so I don't understand why you keep saying we are.

The deficit should have been dealt with slowly and without damaging confidence. That's the opinion of many economists.

The UKs "dip" has already been dubbed the UK "Austerity Recession". What's that tell you?

When will you wake up and realise that the market had no confidence in the UK with such a high deficit, do you know how much you have to pay to raise new capital when noone trusts your debt position. When your taking out hundreds of billions of new debt every year, this increase in interest is huge, by 2015 we would have been paying £80bn a year on debt interest alone. Thats £80bn that has to be cut from public spending just to service our debts. Hows that going to help the economy?

Greece and Ireland are lucky in that they are small countries and could be bailed out by the IMF. The UK will default if it doesn't handle its debts, theres noone to save us.

IronWolf

LauraW10 wrote: »

Ireland always ran a budget surplus. They were fiscally responsible. It was their banks that did for them.

They weren't responsible at all, they encouraged a bubble and suffered dearly for the consequences of when it burst.

abaxas

IronWolf wrote: »

Yes, all those countries reducing their debt, like Ireland & Greece.

The strong countries, like Germany, didn't have to drastically cut spending because their deficit wasn't huge in the first place.

Remember that Economics is an arts subject. It has little or no basis in fact, which was proven by most senior economist not realising that lending money to people who have a history of not paying it back usually ends up with them not paying it back.

Degenerate

IronWolf wrote: »

When will you wake up and realise that the market had no confidence in the UK with such a high deficit, do you know how much you have to pay to raise new capital when noone trusts your debt position.

That's complete fiction, we did not have any significant problems selling our debt, you're confusing alarmist Tory speculation for something that actually happened.

Spartacus_Mills

StevieJ wrote: »

As I said I would be interested to see a comparison of the number of French jobs outsourced and British. Never mind we have plenty of burger flipper jobs.

I am not saying our model is ideal but neither is the French. For the last 4 months of my last contract I spent most of it in a French factory. Great people, very friendly, very welcoming and a good company. The problem is that the dead wood, and it was admittedly a small percentage, were secure and also immune. They could not be eased out and the costs to make them redundant were prohibitive. This gave a form of security and no real incentive to improve. It also did nothing for the motivation of the others. Of course you do not want a scenario where you sack the worst performing 10% to keep the rest on their toes as the former head of GE used to do but you do want more flexibility in your workforce.

Our way does us no favours. The same flexibility that brings companies here (actually I thought it was piles of dosh from HMG) takes them overseas at the drop of a hat.

I remember when Ford closed Fiesta production in Dagenham speaking to one of the Managers there. Ford Dagenham was more efficient and cost effective than the German plant it was up against. The costs of redundancy and dismissal tipped the balance.

Spartacus_Mills

Degenerate wrote: »

That's complete fiction, we did not have any significant problems selling our debt,

That's only because of the action taken by the coalition to address the deficit.

denier.