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Does an expanding workforce result in a bigger deficit?
Comments
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But with employment expanding much faster than expected shouldn't we be seeing the deficit dwindling much more rapidly than anticipated?
presumably in a downturn the first to be let go will be the lower skilled lower experienced lower paid, and then in an upturn that is what will be rehired
also its probably more complicated, for instance it is not just the workforce that contributes to government coffers. There will be oil taxes corporate taxes pensioner taxes (eg income tax on pensions and pensioner spending) investment taxes council taxes tabaco and alcohol and petrol duties VAT etc. An increase in employed will have little impact on a lot of those.
Just for arguments sake it might be 25% to 75% in which case closing a 10% deficit with the 25% workforce net taxes would be a huge struggle short of expanding the workforce nearly 50%0 -
But with employment expanding much faster than expected shouldn't we be seeing the deficit dwindling much more rapidly than anticipated?
Not really.
You`ve a Chancellor that boasts about the UK being the jobs factory of Europe, yet those jobs are so consistently rubbish he has to subsidise them with welfare and lifting them out of tax. The last time I looked tax receipts were risable for a country with a so called jobs boom.
But on the bright side there`s probably a growing brood of some Albanian gypsy`s kids that are living high on the hog at home on CB courtesy of the UK taxpayer. Did I read somwhere that the UK has some 5 million foreign EU citizens working over here now?“Britain- A friend to all, beholden to none”. 🇬🇧0 -
Gordon Brown broke us. He still has the Gaul to preach about the success of his tax credit revolution in reducing child poverty. Pity he's bankrupting those same children as they become adultsLeft is never right but I always am.0
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Maggie Thatcher broke the entire UK when she sold off all the national industries instead of setting them up as a Limited Co. with the Gov. as sole shareholder.
We could have then allowed these industries to expand and invest in non-UK markets, thus making the UK a very rich nation indeed.
Meanwhile, back in the real world the UK economy is heading towards 3rd world status where the amount of money gathered in through Taxes is less than the amount of money being paid out to cover the Govt.'s loans.Never Knowingly Understood.
Member #1 of £1,000 challenge - £13.74/ £1000 (that's 1.374%)
3-6 month EF £0/£3600 (that's 0 days worth)0 -
In 2010 the government expected the deficit to be near zero by now..
As you can see it was a difficult task considering the peaks of other recessions.
http://kevingillan.info/wp-content/uploads/2011/03/uk-deficit1.png
All Labours fault many people say but the Tories were backing Labours spending plans only months before the financial crash..
http://www.telegraph.co.uk/news/uknews/1562023/Tories-vow-to-match-Labour-spending.html
I doubt the Tories would have been running a surplus as theres hardly been one in history..
https://nickthornsby.files.wordpress.com/2011/09/deficit.png
Interesting to see the changes in taxation over the decades looking at Corporate Tax...even under Labour it fell.
http://www.tradingeconomics.com/united-kingdom/corporate-tax-rate/forecast
http://taxfoundation.org/sites/taxfoundation.org/files/docs/Fig1.png
Article from 2014 ...tax revenues have proved disappointing.
http://www.economicshelp.org/blog/12272/economics/falling-uk-tax-revenue/0 -
In 2010 the government expected the deficit to be near zero by now..
As you can see it was a difficult task considering the peaks of other recessions.
http://kevingillan.info/wp-content/uploads/2011/03/uk-deficit1.png
All Labours fault many people say but the Tories were backing Labours spending plans only months before the financial crash..
http://www.telegraph.co.uk/news/uknews/1562023/Tories-vow-to-match-Labour-spending.html
I doubt the Tories would have been running a surplus as theres hardly been one in history..
https://nickthornsby.files.wordpress.com/2011/09/deficit.png
Interesting to see the changes in taxation over the decades looking at Corporate Tax...even under Labour it fell.
http://www.tradingeconomics.com/united-kingdom/corporate-tax-rate/forecast
http://taxfoundation.org/sites/taxfoundation.org/files/docs/Fig1.png
Article from 2014 ...tax revenues have proved disappointing.
http://www.economicshelp.org/blog/12272/economics/falling-uk-tax-revenue/
probably inflation running at say 10-20 % for a few years would be more effective at reducing the national debt (percent of nominal GDP).
A labour government for a few years would maybe help here.0 -
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probably inflation running at say 10-20 % for a few years would be more effective at reducing the national debt (percent of nominal GDP).
A labour government for a few years would maybe help here.
Paying 10-20% interest on a national debt of 80% plus of gdp wouldn't be at all painful....I think....0 -
Maggie Thatcher broke the entire UK when she sold off all the national industries instead of setting them up as a Limited Co. with the Gov. as sole shareholder.
50% of the economy run on the same basis as London Underground (hugely inflated wage bill, under-investment, everything costing 3x what it should, strikes every time there was any attempt at modernisation such as late night trains or staff outside the ticket office when 95% of tickets are electronic or train automation) - wouldn't that be excellent....I think....0
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