Austerity Vs Growth

CLAPTON

crash123 wrote: »

Thanks.
Lets hope it is British inventions. I just wish that the money invested in houses had been spent in other areas.

my regret about housing, is that the money wasn't spent on building more and better houses rather than simply inflating the prices of ones we already have but that's another story

grizzly1911

Going4TheDream wrote: »

I am very much inclined to agree. All these companies make large profits. Why can they not be done cheaper in house so to speak, using synergy of scales.

Private funded initiatives cost an absolute fortune and we are tied in to many for many year, was this really the only way we could build schools/ hospitals. Why do we pay such companies £8 for a ream of paper for gods sakes, that is just for starters.

!!!!!! I know its not that simple but any housewife or family or even single person these days is looking at ways of stretching their £'s to make them go as far as possible

Is it really so unrealistic to expect the government to do be doing the same?[/QUOTE

That is the benefit of privatisation of public services - saves the tax payer such a lot - not.

Once the private sector smell public money they suck it up. They have no principles apart from profit at any cost. Value and quality go out the door.

It's no different when big PLCs outsource.

They might think their purchasing managers are smarter tahn the public sector (probably are more often than not) but they still get done.

In purchasing speak - draining the alligators out of the swamp.

Spiv_2

You can fool most of the people most of the time.

The Government has gone on so much about cutting the deficit and implementing painful and severe cuts in public spending that most people believe this is actually what is happening.
Austerity is the word on everyone’s lips accompanied by much talk about families enduring the biggest cut in living standards since the Twenties and the economy having an even worse recovery from recession than it did in the Thirties.
It is about time for a reality check.

But the biggest gap between perception and reality surrounds public spending and this is the theme of a paper published this week by Tim Morgan of Tullett Prebon, the money brokers. His title “Blowing the Whistle on UK Austerity” gives the game away. His analysis shows government borrowing has been rising not falling, and most of the inroads made into the deficit so far have come as a result of tax increases rather than spending cuts.
Economists by and large know this but I doubt many members of the public do

http://www.thisislondon.co.uk/business/markets/city-comment-cuts-are-a-chimera-and-government-prefers-it-that-way-7753770.html

CLAPTON

of course until the deficit has been eliminated borrowing must continue to rise so no surprises there.