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The Governments Deficit Reduction Plan?

frothy-coffee_2
frothy-coffee_2 Posts: 157 Forumite
in Savings & investments
Note: Please move if wrong forum

Would the UK be in a better financial position if we had only cut the deficit by half?

I personally think we would just be more debt.

As I wonder if the cuts have really affected our GDP all that much.

Interested in your thoughts?
«1

Comments

  • dunstonh
    dunstonh Posts: 119,953 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Would the UK be in a better financial position if we had only cut the deficit by half?

    What would it be like if Hitler won the war? Hyptheticals can be fun but in reality, nobody knows.

    That said, personally I take the view that making spending reductions at a lesser rate would have seen us have to borrow more at higher interest rates which in turn would see us have to borrow more.

    Both scenarios result in pain. The quicker reduction will probably be lesser of two evils over time.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    frothy-coffee wrote: »
    Note: Please move if wrong forum

    Would the UK be in a better financial position if we had only cut the deficit by half?

    I personally think we would just be more debt.

    As I wonder if the cuts have really affected our GDP all that much.

    Interested in your thoughts?


    I don't understand the question

    the deficit hasn't been cut; it is scheduled to continuing growing until at less 2016 (cf the spending review
  • frothy-coffee_2
    frothy-coffee_2 Posts: 157 Forumite
    dunstonh wrote: »
    Hyptheticals can be fun but in reality, nobody knows.
    .

    Agreed, but it's one of the decisions a voter has to consider.

    What about computer modelling. Can that help?
  • frothy-coffee_2
    frothy-coffee_2 Posts: 157 Forumite
    CLAPTON wrote: »
    I don't understand the question (cf the spending review

    I might not have got the grammar/terminology correct but I'm sure you know what I mean.
  • opinions4u
    opinions4u Posts: 19,411 Forumite
    edited 1 December 2011 at 6:08PM
    The nation's debt continues to increase.

    It's a big overdraft that is going to continue to go up, just a bit slower than it did before.

    It's a bit like the decision the Government has taken is to spend £100 more than it earns each week. Opponents think they should spend £200 more than they earn each week.

    Which do you think is least stupid?

    At some point the nation should consider getting itself in to a position where debt repayment is an option. But I'll probably be dead before that happens.

    Politicians are invariably stupid.
  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    opinions4u wrote: »
    The nation's debt continues to increase.

    It's a big overdraft that is going to continue to go up, just a bit slower than it did before.

    It's a bit like the decision the Government has taken is to spend £100 more than it earns each week. Opponents think they should spend £200 more than they earn each week.

    Which do you think is least stupid?

    At some point the nation should consider getting itself in to a position where debt repayment is an option. But I'll probably be dead before that happens.

    Politicians are invariably stupid.

    Althoug i agree with you, can you imagine the outrage of cutting public spending and increas taxation? Given the torys are in power, any sort of cuts will bring out the "taking from the poor giving to the rich" brigade.

    Would be interesting to see how a MSEr would organise public finances.
  • talexuser
    talexuser Posts: 3,537 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    I'd like to know how much of the deficit was caused by bailing out the banks - or is this too simplistic?
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    talexuser wrote: »
    I'd like to know how much of the deficit was caused by bailing out the banks - or is this too simplistic?

    Far too simplistic.
  • lvader
    lvader Posts: 2,579 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    The deficit isn't/wasn't affected by the banks.
  • opinions4u
    opinions4u Posts: 19,411 Forumite
    Lokolo wrote: »
    Would be interesting to see how a MSEr would organise public finances.
    If the opportunity came with a time machine, taking me back to the end of the second world war, I'd love to have a crack at building a slightly more sensible welfare state, where public sector pensions have a proper fund building up ... and take it from there.
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