MSE News: Economic growth slows to 0.2%

Generali

HAMISH_MCTAVISH wrote: »

Next 15 years, better economic growth prospects.

UK or Australia?

IS there not still a sensation that the UK have had their recession whilst Aus is yet to have one? I'm wary of "paradigm shifts" being discussed in Aus regarding the boost to currency and terms of trade.

Australia has her economic problems no doubt. There is 'too much' private debt and industry has been squeezed to bursting by the high AUD.

On the plus side Australia is the bread basket of a very hungry Asia and, thanks to some very forward thinking policies by both Labor and the Coalition, future pension liabilities are unlikely to be a problem.

Australia is in a good position for now for the most part. Whether that will remain the case only time will tell.

Generali

teddyco wrote: »

Yes, you make a good point, and I understand that Thatcher increased VAT from 8% to 17.5%, but one factor that was in play at the time was an 'oil glut' which forced the price of oil from a peak of $35 down to $10 in 1986. I wonder if she would have been able to increase VAT that much if the cost of oil and energy in 1986 had been as high as today?

In the early 80s there was nothing to stop her Government increasing VAT on some items and no others, now that is harder due to EU single market rules AIUI.

The 'best' thing to do changes over time. Lady Thatcher was a great PM for her time but that doesn't mean that all her policies would be ideal today. My opinion is that taxes and welfare spending need to fall but that can be done with very few losers by removing some subsidies to people in work who pay tax and get welfare.

Loughton_Monkey

teddyco wrote: »

A cut in the VAT is something George Osborne needs to consider for the next budget.

This initially struck me as illogical, and very little to do with the price of fish.

A 2½% cut in VAT would cost Osborne about £12 bn.

The UK GDP is in the order of £1,350 bn.

So imaging we get this 'goodie' and ALL of us go out and spend, spend, spend, then that will affect annual GDP growth by 0.89%, or, say, 0.2% per quarter.

But in fact (a) it wouldn't, because half of us would save it, and (b) those that spent it would generally spend it on imported goods.

So he's far better not spending £12 bn. Or if he does, spend it a couple of nice British Built bomber planes. Far better for the UK economy, and as a 'bonus', we'll eventually build up the capability to extend our 'forays'. Iraq and Afghanistan are done. What's next on the list? Iran? Pakistan?

76rosie

it is time bosses paid there staff instead of keeping their hands in their pockets and saying we 're all in it together. If it wasn't for being a moneysaver don't know what i would do. I'm sure i'm not the only one.

crash123

Generali wrote: »

Lady Thatcher was a great PM for her time but that doesn't mean that all her policies would be ideal today. My opinion is that taxes and welfare spending need to fall but that can be done with very few losers by removing some subsidies to people in work who pay tax and get welfare.

Some of her policies were good but the selling of council houses was a very bad idea.
my parents took advantage of this but we still thought it was wrong.

Thrugelmir

michaels wrote: »

It does worry me that Balls is suggesting we are copying Greece's mistake of 'cutting to quickly'.

Very lame comment from the shadow chancellor. Almost a nothing one.

LauraW10

Quelle surprise!!!

Who knew?

Useless, useless Tories......... they won't be happy until the IMF are called in....

Laura x

Generali

LauraW10 wrote: »

Quelle surprise!!!

Who knew?

Useless, useless Tories......... they won't be happy until the IMF are called in....

Laura x

What are they doing wrong in your opinion?

Do you think they are cutting the deficit too slowly or would you rather they followed the policies of Greece and Portugal?

peakoil_2

Generali wrote: »

What are they doing wrong in your opinion?

Do you think they are cutting the deficit too slowly or would you rather they followed the policies of Greece and Portugal?

I'll be amazed if you get any response from that clown. soundbites is the best these morons can do. do they forgte that it was labour who got us all into this mess? again.

Really2

LauraW10 wrote: »

Quelle surprise!!!

Who knew?

Useless, useless Tories......... they won't be happy until the IMF are called in....

Laura x

Yes nasty Bar stewerds, Growth while cutting spending.

We should follow the line of all the other indebted nations and not cut a thing or cut when it is to late.
It's not going wrong for them is it?

But I do like that people blame the tories for the 80's but don't blame Labour for this mess.

The Current goverments job is like bar staff and cleaners clearing up after a rugby club party, they are the only people left to do it.
The people who partied have spent all the money and were incapable of clearing up the mess they made.
Infact the line they seem to still band around is carry on spending even though they were planing cuts to a similar scale as the current government.
I would have thought the problem of high debt are fairly clear now and austerity to get out of the mess seems to be the accepted thing to do.

I am fairly sure Ireland, Greece & Pourtugal would have wished they never racked up so much debt.