Cutting the UK deficit, is it really happening?

SteveSilva

The government says its is trying to cut its or rather our deficit by cutting spending and reduce borrowing. But is this actually happening or is it just all hot air. I read that the cuts have yet to bite, so when will they, and does anyone know if there is an actual timetable to reduce the enormous deficit?

lvader

A lot of the cuts are based on not increasing spending in line with inflation, since inflation is quitte high so are the effective cuts.

Loughton_Monkey

You probably under-estimate the size of the deficit.

It is simply not possible physically to reduce the deficit for some years. All they can do is significantly cut expenditure. In turn, this reduces the rate at which the deficit is growing. There will then come a point at which the deficit stops growing. Only after this point will it start reducing.

Sadly, we were run for a long time by a debt-crazed spending-monkey who thought that massively increasing benefits, and employing more public sector 'workers', would somehow 'boost' the economy. It's the same mentality that says:

"I need a new television. I cannot afford a television. But I can borrow money on my credit card. So if I spend £ thousands on food I don't need, I will eventually have enough Nectar Points to get a television."

atush

Waht they are doing is trying to not ADD tot he deficit by not increasing what we owe. The interest on the deficyt (which is in effect a loan) will and has Added tot he deficit. nce we stop that , ew can try to actually lower the deficit.

But the books were 'cooked' by th previous gov and some schemes they put thru were only discovered monts after the new gov took office.

Ark_Welder

Is this Savings & Investments, or a Debate?

atush

Sorry Ark for feeding the troll/debater.

experience08

Ark_Welder wrote: »

Is this Savings & Investments, or a Debate?

Doesn't the size of the deficit affect Savings & Investments?

globalds

atush wrote: »

Waht they are doing is trying to not ADD tot he deficit by not increasing what we owe. The interest on the deficyt (which is in effect a loan) will and has Added tot he deficit. nce we stop that , ew can try to actually lower the deficit.

But the books were 'cooked' by th previous gov and some schemes they put thru were only discovered monts after the new gov took office.

That's complete rubbish.

We are adding to the deficit by the about the same amount this year as last.

The rumour is there may be more QE ..you won't believe how quickly we can add to the deficit then.

Whilst the evil Labour government spent 10 years raping this naive islands population of it's wealth ...Where was the Tories outcry in opposition ...Nowhere ...Because they would have done the very same thing.

Ark_Welder

experience08 wrote: »

Doesn't the size of the deficit affect Savings & Investments?

Yes. But doesn't appear to be the path that the OP is following.

You could change the direction to how the deficit might affect investments, though. Perhaps how the speed of a reduction might influence asset-allocation decision making.

Otherwise, this thread could just end up being a rehash of what is already posted elsewhere....repeatedly...

flexrider

In a non politicial ideal world an simple solution happened this is coming also from a private Employer this comments by the way if everyone in the country was working and not claiming benefits tomorrow the higher the rate of tax coming in would cut the deficit per year

However since most companies are privatised anyway these days direct Goverment have no say who gets employed all the power in the world they can do is poke and nudge reminds me just like "yozza hughes from the old 80's drama Boys from the Black stuff is say to the private companies

"Go on-Gizza lotta jobs for our boys unemployed" which can fall on deaf ears.
http://www.youtube.com/watch?NR=1&v=PMkycirEesQ

come to think of it same senario under the conservatives back then with iron knickers maggie at the front.

There is still alot of legwork to be done which i can see never been acheiving in this country. Somewere down the line i would love to see the french rules in place making debt Illegal but never will happen.

Thrugelmir

experience08 wrote: »

Doesn't the size of the deficit affect Savings & Investments?

Yes as its going to impact the value of our "savings" in the UK .