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The myth of Austerity Part III

The IFS has reported on the state of Britain's finances. They don't look good, to put it mildly.

A few surprisingly points are:
our current chancellor's policy is even too loose to meet the terms of Labour's own Fiscal Responsibility Act of 2010, which imposed legal sanctions for failing to meet various debt and borrowing criteria.

(Labour are still saying that the Chancellor is cutting too far too fast, even though his current spending plans are more generous than Labour's own deficit reduction plans).

Welfare will rise to 32.5% of all spending, up from 28.5%, and of that pot, not even 25% is means tested!

85% of taxes arise from the top 50% of income earners!

It's looking more and more like Osborne has totally lost control of the nation's finances!

Stephanie Flanders summary here:http://www.bbc.co.uk/news/business-21322701

Telegraph take here:
http://www.telegraph.co.uk/news/politics/9852053/George-Osborne-will-need-to-raise-taxes-to-plug-64bn-black-hole.html
«134

Comments

  • posh*spice
    posh*spice Posts: 1,398 Forumite
    edited 6 February 2013 at 12:06PM
    Wookster wrote: »
    (Labour are still saying that the Chancellor is cutting too far too fast, even though his current spending plans are more generous than Labour's own deficit reduction plans).

    Seriously - are you trying to blame this on the opposition? Two years in, the buck has to stop with the government for !!!!!!. Stop apologising and making excuses for them these guys are !!!!!.....what a f****** mess.

    PS I've thanked your post only because the Links are good ;-)
    Turn your face to the sun and the shadows fall behind you.
  • posh*spice
    posh*spice Posts: 1,398 Forumite
    we_re_smoking_hookah_while_rome_burns_mug-p168078961486752066en711_216.jpg
    Turn your face to the sun and the shadows fall behind you.
  • posh*spice wrote: »
    Seriously - are you trying to blame this on the opposition? Two years in, the buck has to stop with the government for !!!!!!. Stop apologising and making excuses for them these guys are !!!!!.....what a f****** mess.

    PS I've thanked your post only because the Links are good ;-)

    That's nonsense too, it takes far more than two years to sort out the sort of economic and public financial shambles left after thirteen years of Labour. There is no quick fix, that's just left wing propaganda -- like the above post.
    No-one would remember the Good Samaritan if he'd only had good intentions. He had money as well.

    The problem with socialism is that eventually you run out of other people's money.

    Margaret Thatcher
  • robmatic
    robmatic Posts: 1,217 Forumite
    posh*spice wrote: »
    Seriously - are you trying to blame this on the opposition? Two years in, the buck has to stop with the government for !!!!!!. Stop apologising and making excuses for them these guys are !!!!!.....what a f****** mess.

    PS I've thanked your post only because the Links are good ;-)

    No, I think he's pointing out that Ed Balls's current pronouncements are a load of bobbins.
  • LauraW10
    LauraW10 Posts: 400 Forumite
    That's nonsense too, it takes far more than two years to sort out the sort of economic and public financial shambles left after thirteen years of Labour. There is no quick fix, that's just left wing propaganda -- like the above post.

    Explain to me exactly why you think the deficit is rising?
    If you keep doing what you've always done - you will keep getting what you've always got.
  • LauraW10
    LauraW10 Posts: 400 Forumite
    robmatic wrote: »
    No, I think he's pointing out that Ed Balls's current pronouncements are a load of bobbins.

    Ed Ball's isn't making any pronouncements - he's way to clever for that ;) - he did say that the Tory plans wouldn't work because they ignored growth - he was right about that...
    If you keep doing what you've always done - you will keep getting what you've always got.
  • ILW
    ILW Posts: 18,333 Forumite
    Why assume increased government spending equals growth?
  • That's nonsense too, it takes far more than two years to sort out the sort of economic and public financial shambles left after thirteen years of Labour. There is no quick fix, that's just left wing propaganda -- like the above post.

    Alistair Darling realised that. It's a pity George Osbourne didn't.

    One of the bits of propganda peddled about by the right wing that Labours plans were to spend, spend, spend.

    Labours plans involved cuts, just not so deep and so fast as to cripple consumer confidence.
  • LauraW10
    LauraW10 Posts: 400 Forumite
    ILW wrote: »
    Why assume increased government spending equals growth?

    You need to do some reading. Try googling "Why austerity doesn't work"
    If you keep doing what you've always done - you will keep getting what you've always got.
  • Tancred
    Tancred Posts: 1,424 Forumite
    Austerity is just one of those things that sound good but only do damage. It's a bit like killing the patient to destroy the cancer.
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