Austerity Vs Growth

grizzly1911

Generali wrote: »

Skills shortages are the big problem for Aus. We'd love to have a load of Polish people or whatever that are skilled and motivated.

The problem is that Aus is in a generally poor part of the world so there are a lot of people that would like to come here that wouldn't be bringing skills that are needed.

Whilst looking at some positions, for a relative, qualified in a desired field, age was also a barrier with there being a cut off in the low 40s.

I guess they want some contribution to the pot before you start being a liability.

crash123

CLAPTON wrote: »

as a generality 'our' children won't be paying anything for the current mess because any debts that are paid will benefit some-one else

one persons debt is another persons saving
one countries balance of payment deficit is another countries surplus

there may be a transfer of wealth from one section of society to another but no overall loss.

So who is going to pay? Lets default.
The West has debts and the East has the savings. Transfer of wealth from West to the East. No overall loss

Wookster

CLAPTON wrote: »

as a generality 'our' children won't be paying anything for the current mess because any debts that are paid will benefit some-one else

How on earth do you figure this out??

HAMISH_MCTAVISH

Wookster wrote: »

learn from the mistakes of others?

What, like Greece and Ireland, whose economy is in ruins thanks to excessive austerity and no growth?

Also, I see despite your repeated assertions in this thread that "the markets" won't allow a change of course, you have ignored this....

Perhaps the biggest bond vigilante of them all, Bill Gross at Pimco, warned against continuing austerity in it's current form over 6 months ago, and called on Osborne to make changes which would stimulate growth instead.

The alternative he said, would be to risk recession.

Turns out he was right.

(Reuters) - The austerity measures implemented by Chancellor George Osborne risk pushing the UK economy into recession, Bill Gross, the manager of PIMCO, said in an interview with the Times.

Gross, who manages the world's biggest bond fund, told the newspaper that a "mid-course correction" of the fiscal plans would lift the economy and should not damage the country's standing with bond investors.

"The economy in the UK is worse off than it was when the plan was developed, so there should be at a minimum fine-tuning and perhaps re-routing of the plan," he was quoted as saying.

Gross said a similar argument applied to other leading economies, including in the euro zone and the United States, which he said faced a mounting crisis.

"The UK is actually in the best position of all to make a mid-course correction," Gross said.

He told the newspaper that he did not want a 180-degree U-turn but that for PIMCO "a mild re-adjustment that might keep the economy out of recession would be viewed very favourably"

LordSVS

Savings need to be made, yes. But to cut police, fire service, health service etc, does not help matters.

Taxation for the rich needs to be lowered. Corporation tax needs to be lowered. I know if I was setting up another company, I wouldn't do it in the UK just because of the high tax. I would go elsewhere!

Taxation is scaring away investors, they will not invest in this country if tax remains at the rate it is at. At the end of the day (I hate that saying), they create jobs!

Lord SVS

CLAPTON

crash123 wrote: »

So who is going to pay? Lets default.
The West has debts and the East has the savings. Transfer of wealth from West to the East. No overall loss

There is no overall loss. Savings and debts opposite sides of the same coin.

If we have the savings and the east had the debts would that be morally better; maybe you are longing for the days of Empire again.

I don't understand your comments about defaulting; what do they mean?

CLAPTON

Wookster wrote: »

How on earth do you figure this out??

which bit don't you understand about globally savings = debts; ?

CLAPTON

LordSVS wrote: »

Savings need to be made, yes. But to cut police, fire service, health service etc, does not help matters.

Taxation for the rich needs to be lowered. Corporation tax needs to be lowered. I know if I was setting up another company, I wouldn't do it in the UK just because of the high tax. I would go elsewhere!

Taxation is scaring away investors, they will not invest in this country if tax remains at the rate it is at. At the end of the day (I hate that saying), they create jobs!

Lord SVS

and I suppose you use the recent investment in Jaguar and in ellesmere port as proof?

LordSVS

CLAPTON wrote: »

and I suppose you use the recent investment in Jaguar and in ellesmere port as proof?

If you talk to investors within business circles, they look at the UK at having high taxation. That would mean less profit. If I was going to invest a few million, i'd avoid the UK until such times the rate is lower.

Jaguar do like to invest in England, mainly because of their brand, but most companies will not.

Lord SVS

pqrdef

Mrs_Bones wrote: »

We can not just keep putting things on the never never for infinity.

But as Gordon used to keep pointing out back when he was married to Prudence, you balance the books over the economic cycle. If you spend in the good times and cut in the bad times, you only make things worse. The government has to manage the economy as well as the budget, and to do that it has to use its muscle to go against the cycle

The private sector is already trotting out the usual excuses and complaining that the government needs to do more (i.e. spend more) to stimulate growth. It can't do it on its own. It wants government finance, government guarantees, government contracts. But the government has turned off the gravy tap and deprived it of its lifeblood.