UK, the austerity fairy and the failure of the current government

Discussion in 'Politics, Religion, Social Issues' started by VulchR, Nov 21, 2015.

  1. VulchR macrumors 68020

    VulchR

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    #1
    The UK government is failing. It's not just that the the UK Tory government's welfare cuts victimised the poor so the rich can have tax cuts: it's that by their own yardstick of cutting government debt, the Tories have failed utterly, as economists told them they would do if they did not stimulate the economy.

    [​IMG]
    Source: UK ONS, as shown in the Guardian.
     
  2. jnpy!$4g3cwk macrumors 65816

    jnpy!$4g3cwk

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    #2
    It looks like the trailing zeroes got cut off on the right? It has to be ~80%, not 8%. Or, am I reading it wrong?
     
  3. mrsir2009 macrumors 604

    mrsir2009

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    #3
    So going into more debt would have reduced the debt?
     
  4. jnpy!$4g3cwk macrumors 65816

    jnpy!$4g3cwk

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    #4
  5. aaronvan Suspended

    aaronvan

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    #5
    That's a very Keynesian way of looking at it.
     
  6. jnpy!$4g3cwk macrumors 65816

    jnpy!$4g3cwk

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    #6
    Thank you.
     
  7. Zombie Acorn macrumors 65816

    Zombie Acorn

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    #7
  8. VulchR, Nov 22, 2015
    Last edited: Nov 22, 2015

    VulchR thread starter macrumors 68020

    VulchR

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    #8
    Didn't notice that... Doesn't inspire confidence in the Guardian...

    It would have stimulated economic growth, and prepared the infrastructure for enhanced economic activity during the recovery (the boom years). The price would have been increased inflation, but then again the inflation rate in the UK is below the target. The problem is now if another bust comes, that interest rates could hardly go lower to stimulate the economy. We are teetering on a knife edge, and if anything the Tory policies have delayed the recovery, which led to lower taxes being paid, which fuelled the deficit.

    Austerity was disastrous for Greece as well, which ran into the same trouble of not having enough economic activity to produce enough taxes to pay off their debt. And yet the UK Tory government is talking about 30% cuts in some departments, all because they are too arrogant and dogmatic to listen to the economists who have pointed out increasing public sector spending during a recession is not a radical left idea. It's mainstream economics.

    Meanwhile, about 2 year's worth of growth has been lost from the FTSE100: see https://uk.finance.yahoo.com/echarts?s=^FTSE#symbol=^FTSE;range=5y
     
  9. Huntn macrumors G5

    Huntn

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    #9
    Interesting Atlantic Magazine from 2012 Europe's Real Crisis, demographics plays a big role. Does this apply to the UK?

    Quote:
    Strong growth by Europe’s troubled debtor nations would of course offer a different, and less painful, way out. After all, if you make $30,000 a year, a $10,000 credit-card balance is crippling; but if you make $300,000 a year, it’s fairly trivial. The faster Italy’s economy expands, the more manageable Italy’s debt becomes.

    But that’s where the dearth of workers comes into play. Everyone agrees that rapid growth would be much nicer than higher taxes and slashed pension payments. The hitch is that over the past five years, growth in the Italian economy hasn’t averaged even 1 percent a year. Soaring growth will be tough to achieve, because more and more Italians are getting too old to work—and fewer and fewer Italians have been having the babies needed to replace them.

    Italy’s fertility rate has actually been inching up from its 1995 low of 1.19 children for every woman, but it is still only about 1.4—well below the number needed to replenish its population (2.1). As a result, even with some immigration, Italy’s population growth has been very slow. It will soon stall, and eventually go into reverse. And then, one by one, the rest of Europe’s nations will follow. Not one country on the Continent has a fertility rate high enough to replace its current population. Heavy debt and a shrinking population are a very bad combination.
     
  10. VulchR thread starter macrumors 68020

    VulchR

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    #10
    This applies to some parts of the UK. London is expanding, as are some of the other cities. but places like Scotland are losing population. At one point Dundee was losing 10,000 people a year through attrition and young people leaving for higher growth areas like London. But the point about demographics is correct, which is why I fail to understand the utter panic we're having about immigration and refugees.
     
  11. NT1440 macrumors G4

    NT1440

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    #11
    And it's a way that history has shown works....up until we had an economic revolution in the 80's and every measure of human well being has declined since.
     
  12. unlinked macrumors 6502a

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    #12
    Scotland has been growing for the last decade from what I can see. Declined a bit during the 80s and 90s.
     
  13. jnpy!$4g3cwk macrumors 65816

    jnpy!$4g3cwk

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    #13
    Liberal sources like Huffington Post have also complained for some time about the level of debt in Ontario. I haven't found a good online source for serious information, though. Most data is for all of Canada, not each province separately. Can you point to some good sources?
     
  14. VulchR thread starter macrumors 68020

    VulchR

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    #14
    I stand corrected. When I first arrived here Scotland was losing population, then it appears that it started to increase a little, but at a rate less than the rest of the UK. It appears recently (2012 or so) then there has been a bit of a spurt, including net migration from England (refugees from Tory-land? :p).
     
  15. sim667 macrumors 65816

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    #15
    Of course austerity was an ideological move too.......

    Ole Georgey borrowed more money in three years than labour did in its previous term.
     
  16. Zombie Acorn, Nov 24, 2015
    Last edited: Nov 24, 2015

    Zombie Acorn macrumors 65816

    Zombie Acorn

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    #16
    https://en.m.wikipedia.org/wiki/Ontario_government_debt

    Was referencing the Ontario finance site, but they moved the page.

    That page also covers eHealth and power plant scandals where the liberals drained billions into their cronie friends and or to save their asses in election season.
    Deleting email trails along the way.

    Doesn't mention the most recent cash grab with the liberals paying negotiating costs for the unions while the unions had millions stashed away just for the process. How long would you hold out negotiating if your "enemy" was paying your lawyers bills in the millions of dollars?
     

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