Obama Right Osborne Wrong?Lab Win Means US Business?

DecentLivingWage

We are all in new territory here - even him,these are unprecedented times,even the president doesnt know whats going to happen - at least i have the humility to ask about it? At the very least America is buzzing with optimism hope and a new drive to work hard and do business! Osborne could learn from that.

lvader

DecentLivingWage wrote: »

At the very least America is buzzing with optimism hope and a new drive to work hard and do business! Osborne could learn from that.

Is it really?

Thrugelmir

lvader wrote: »

Is it really?

Appears so...........

A simple guide to the financial problems of the US circulating in the City reduces the vast number of zeroes involved to a simple household budget. This is it:

"Fiscal cliff put in a much better perspective:

'US tax revenue: $2,170,000,000,000

Federal budget: $3,820,000,000,000

New debt: $1,650,000,000,000

National debt: $14,271,000,000,000

Recent budget cuts: $38,500,000,000

Let's now remove eight zeros and pretend it is a household budget:

Annual family income: $21,700

Money the family spent: $38,200

New debt on the credit card: $16,500

Outstanding credit card balance: $142,710

Total household budget cuts so far: $38.50

Got it?"'

DecentLivingWage

Conrad wrote: »

UK manufacturing activity hits 15-month high

http://www.guardian.co.uk/business/2013/jan/02/uk-manufacturing-activity-15-month-high

Not difficult after 14 months on the floor!

'export orders fell' and

"Business confidence ... remains fragile and could easily be derailed by setbacks in key export markets, notably any resurgence of the eurozone debt crisis," Dobson said.

Britain's economy also faces headwinds from a long-term government austerity programme and inflation that has proven slower to fall than the Bank of England has forecast, eating into consumers' spending power.

Wednesday's data showed continued price pressures on manufacturers, whose costs rose at the fastest rate since March, driven by chemicals, energy, food products and plastics.

Manufacturers in turn raised the prices they charged at the fastest rate since April.

Employment in the sector fell marginally, showing the smallest decline since August.

Generali

DecentLivingWage wrote: »

We are all in new territory here - even him,these are unprecedented times,even the president doesnt know whats going to happen - at least i have the humility to ask about it? At the very least America is buzzing with optimism hope and a new drive to work hard and do business! Osborne could learn from that.

It's like having Walter Mitty on the board.

chewmylegoff

No, it's like having a Labour Party activist on the board.

Pete111

Thrugelmir wrote: »

Appears so...........

That U.S. budget/income/debt illustration is rather terrifying. Did noone notice this happening? It can't all be from the bank bailout in 2008! (can it?)

I'm aware ours is also appalling however - is there a similar working for the UK?

DecentLivingWage

Pete111 wrote: »

That U.S. budget/income/debt illustration is rather terrifying. Did noone notice this happening? It can't all be from the bank bailout in 2008! (can it?)

I'm aware ours is also appalling however - is there a similar working for the UK?

Yes, I beleive some very helpful posters have put them on other economy threads here. Point is, the US has turned the crucial 'confidence corner' whereas Osborne and the cons are still sinking into the 'No Confidence ' vicious circle of ever-shrinking growth.... bad retail figures for xmas when you take out the xtra 2 shopping days this year.

Now the US is correcting Cameron 'you drop EU and we'll drop you!'

Generali

Pete111 wrote: »

That U.S. budget/income/debt illustration is rather terrifying. Did noone notice this happening? It can't all be from the bank bailout in 2008! (can it?)

I'm aware ours is also appalling however - is there a similar working for the UK?

We can do this for last financial year.

UK Tax Revenue: £589,000,000,000
UK Government Spending: £711,000,000,000
New debt: £122,000,000,000
National debt: £1,278,200,000,000

Let's equate that to a couple earning £40,567 a year (=589/wk net) between them and not claiming any benefits:

Annual net earnings: £30,628
Annual expenditure: £36,972
Annual overspend: £6,344
Weekly overspend: £122
Total debt: £66,466.40 which is 26 months of net wages.

These figures exclude the cost of the bank bailout as it is highly debatable how much that cost. The cost as measured on the Government's books is about £500,000,000,000 so the total debt in the example above would rise by about £27,500.

However to stretch the analogy above to breaking point to add the £27,500 to the debt would be a bit like saying that you'd taken out a very low interest loan to help out your brother who is bad with money and whose credit rating is shot to bits. He normally comes through in the end so there's a good chance that you'll see most of the money again some day but perhaps not all of it and it's uncertain when he'll give you the money back. He's promised that 'when' his latest mad plan to make money comes up he'll give you a chunk of the money to say thanks but don't rely on that chancer!

Generali

By way of interest, I have done the same calculation for FY 2009-10, the last year Labour were in power:

UK Tax Revenue: £528,900,000,000
UK Government Spending: £687,900,000,000
New debt: £159,000,000,000
National debt: £1,156,200,000,000

As you can see, the Conservative Government has reduced the deficit by increasing taxes pretty dramatically while holding down the rate of growth of Government spending.