UK borrowing £64bn more than forecast, says IFS report

BACKFRMTHEEDGE

Thrugelmir wrote: »

Spend spend spend..........

The only answer.

It's the Tory way

Does make you wonder if there will be a full-blown debt crisis in the UK in the next two years?????

grizzly1911

dktreesea wrote: »

The IFS' view is the same as in the Great Depression, but it wasn't austerity that ended that depression. It didn't end until governments started spending, on huge capital works/infrastructure projects. This time is no different. If private businesses either can't or won't invest (including banks) the government has to step in and invest instead.

Back to "nationalisation" in some form perhaps.

Doesn't this show the reliance on the state by the private sector and also the interdependence between the two?. Two sides of the coin if want to keep it spinning you need balance.

Thrugelmir

BACKFRMTHEEDGE wrote: »

Does make you wonder if there will be a full-blown debt crisis in the UK in the next two years?????

Thought the debt crisis started in August 2007...........

5 and half years in. Still no nearer resolution.

Great depression only lasted around 15 years.

dktreesea

grizzly1911 wrote: »

Back to "nationalisation" in some form perhaps.

Doesn't this show the reliance on the state by the private sector and also the interdependence between the two?. Two sides of the coin if want to keep it spinning you need balance.

If the state took care of the things it was meant to take care of, like putting in place appropriate infrastructure and providing adequately educated citizens to enable private business to prosper, Britain wouldn't be in its current dire situation. Instead, there's so much waste here. Things like adequate flood defences aren't built so year on year properties flood, resulting in a tremendous waste of money, effort and lost productivity for all involved.

Here's another example of waste; money spent, in this particular case, because Britain's border controls and follow up of overstayers is quite inadequate.
http://www.standard.co.uk/news/london/seventeen-held-in-dawn-raids-to-tackle-beds-in-sheds-8484832.html

Moby

GeorgeHowell wrote: »

Labour are saying that growth can only come if the government spends more, presumably on welfare since that's where they keep harping on about cuts. So in their view the two are inextricably linked. Is that a schoolboy error on their part ?

Back to welfare scroungers are we George!

Moby

GeneHunt wrote: »

GDP Q3 2009 to Q3 2010 2.7%

Under coalition 0.9% in 9 qtrs :eek:

Exactly....but try telling some on here that!

homelessskilledworker

Moby wrote: »

Exactly....but try telling some on here that!

Labour would have done nothing better, at least with the Tories they have given the message to financial markets and the credit agencies that they are at least attempting to do something about the over spending.
And because of that we at least for now are able to put off our problems for a little while longer, those in heavy debt for example are being given the benefit of the doubt because Growth/GDP is just around the corner(snigger).

The only thing that has prevented the UK having the recession it should of had is the debt forgiveness(or putting off of it). But this will not last much longer when growth will be seen to be way in the distance.

And of course if Labour do get into number 10 the markets will plummet over night, it will be the winter of discontent within a year or two.

dktreesea

homelessskilledworker wrote: »

I do partly agree with you posh, but if you think Labour will in any way save us you are terribly deluded.

All parties now would have to make cuts, thats a given. If we are going to borrow for growth then we should be building infrastucture, my choice would be houses, and lots of them.

If anything the Tories are not pushing austerity nowhere near hard enough, and they are hitting the poorest the hardest with the austerity cuts they are making. What we should be doing is stop molly coddling those with high unsustainable debt and somehow taking back from those who made a mint in Gordon Browns era, which now turns out to of been a illusionary false golden economy, how you would do that I have no idea.

Everything right now is on hold because of muppets who borrowed money they are struggling to pay back.

The government would do well to build flood defences for existing houses before they waste any more money building on flood plains.