Fuengirola Saint Posted 19 July, 2012 Share Posted 19 July, 2012 It's the Plan B that Georgie said he didn't need. Sorry for plagiarising your post, i posted before seeing it, virtually word for word Link to comment Share on other sites More sharing options...
Johnny Bognor Posted 19 July, 2012 Share Posted 19 July, 2012 It's an economic oddity that cutting VAT very rarely causes an increase in spending and most of the time does little to boost the economy. It seems logical that if people are getting a tax cut then they will have more money to pump back in to the shops, restaurants etc, weirdly though it just doesn't seem to happen. Indeed and it is pretty easy to see why. Most goods and services are priced inclusive of VAT. So if I sell a widget for £9.99 (inclusive of 20% VAT) am I going to reduce the price of my widget to £9.58 if the VAT is cut from 20% to 15%. Of course not. My widget will still cost you £9.99. So you won't have more to spend. More money goes into the retailers so it does help to some extent, but our wallets won't be any fatter unless you are a shop keeper Link to comment Share on other sites More sharing options...
suewhistle Posted 19 July, 2012 Share Posted 19 July, 2012 The International Monetary Fund has told the government it must kickstart the economy with a boost to spending and increased investment if it is to avoid a long depression and a "permanent loss of productive capacity". ... Link to comment Share on other sites More sharing options...
Ex Lion Tamer Posted 25 July, 2012 Share Posted 25 July, 2012 GDP down 0.7% in last quarter, what a disaster. Can we now agree that you can't cut your way out of a recession and that the government's economic policy is doing real damage? Link to comment Share on other sites More sharing options...
bridge too far Posted 25 July, 2012 Share Posted 25 July, 2012 GDP down 0.7% in last quarter, what a disaster. Can we now agree that you can't cut your way out of a recession and that the government's economic policy is doing real damage? Indeed - and construction output is down 5.2%! We should do what we did in the 30s (apparently) and build our way out. There's a shortage of housing and building housing not only gives employment to construction workers but has a significant knock-on effect in so many other areas. Link to comment Share on other sites More sharing options...
Ex Lion Tamer Posted 15 August, 2012 Share Posted 15 August, 2012 Of the 20 economists who wrote to Osborne in 2010 to express support for his debt reduction strategy, only one is now prepared to defend it: http://www.newstatesman.com/blogs/politics/2012/08/exclusive-osbornes-supporters-turn-him Link to comment Share on other sites More sharing options...
trousers Posted 15 August, 2012 Author Share Posted 15 August, 2012 Tories out! Link to comment Share on other sites More sharing options...
badgerx16 Posted 15 August, 2012 Share Posted 15 August, 2012 Tories out! That would leave us with a minority Lib-Dem Government. Link to comment Share on other sites More sharing options...
Thedelldays Posted 15 August, 2012 Share Posted 15 August, 2012 Oh great. The Olympics has been over for a few days. And this crap begins Link to comment Share on other sites More sharing options...
badgerx16 Posted 15 August, 2012 Share Posted 15 August, 2012 Oh great. The Olympics has been over for a few days. And this crap begins It never went away, the Olympics were just a distraction. Link to comment Share on other sites More sharing options...
trousers Posted 15 August, 2012 Author Share Posted 15 August, 2012 Life's a distraction Link to comment Share on other sites More sharing options...
trousers Posted 15 August, 2012 Author Share Posted 15 August, 2012 That would leave us with a minority Lib-Dem Government. Them too Link to comment Share on other sites More sharing options...
badgerx16 Posted 15 August, 2012 Share Posted 15 August, 2012 Life's a distraction Reality is an illusion brought about by a lack of alcohol. Link to comment Share on other sites More sharing options...
Thedelldays Posted 15 August, 2012 Share Posted 15 August, 2012 It never went away, the Olympics were just a distraction. Exactly, the world was the same yet everyone was happy. I doubt many would care as much if the press did not headline every single detail of the powers at be Link to comment Share on other sites More sharing options...
Ex Lion Tamer Posted 15 August, 2012 Share Posted 15 August, 2012 Exactly, the world was the same yet everyone was happy. I doubt many would care as much if the press did not headline every single detail of the powers at be At the risk of being a left wing cliche (!), I doubt the 2.5million unemployed forgot their troubles during the Olympics. But because the middle classes and the newspaper reporters were having a jolly time we can assume that everyone was happy Link to comment Share on other sites More sharing options...
Thedelldays Posted 15 August, 2012 Share Posted 15 August, 2012 At the risk of being a left wing cliche (!), I doubt the 2.5million unemployed forgot their troubles during the Olympics. But because the middle classes and the newspaper reporters were having a jolly time we can assume that everyone was happy So, you only enjoyed the Olympics if you are employed and/or middle class? Link to comment Share on other sites More sharing options...
Ex Lion Tamer Posted 15 August, 2012 Share Posted 15 August, 2012 (edited) So, you only enjoyed the Olympics if you are employed and/or middle class? No, obviously its a generalisation. But you seemed to be suggesting that we should just ignore these problems and be happy, like we were in the Olympics. Probably you're right that most people wouldn't care about this stuff if it wasn't in the papers, but its important that we all do think about the economy and the effect Tory policies are having on others less fortunate than ourselves. By the way, as a middle class person struggling with the increase in rents in London, I really didn't get this Olympic feelgood factor that everyone has apparently experienced. I enjoyed the opening ceremony and some of the sport but I'm quite glad it's over now and we can be free from the enforced jollity. I am much more excited about the start of the football season to be honest. Edited 15 August, 2012 by Ex Lion Tamer Link to comment Share on other sites More sharing options...
Minty Posted 16 August, 2012 Share Posted 16 August, 2012 I'm quite glad it's over now and we can be free from the enforced jollity. Nobody forced me to enjoy it. But I did. I know others who didn't enjoy it. And that was fine too. I also know some unemployed people who enjoyed it too. Some of them found that it helped them to feel a part of something, gave them some pride in their country and motivated them to try and make more effort to find work (they've been unemployed some time and have found it hard to get out of the 'rut' at times). Credit to them. Another unemployed mate was exactly as you suggest, and quite resentful of the fact that people were 'enjoying' it whilst he was struggling. Takes all sorts - mostly it depends on the personal outlook of the individual, their own resolve to deal with situations good and bad, and taking whatever positives they can from a situation. A relative of mine has a steady job, no debt, a comfortable new flat, no heavy ties or commitments, and a healthy loving family but moans all the time about the fact he struggles for motivation to do stuff and that government are to blame for everything bad in the world, when he, more than most, is in control of his own destiny. He just chooses to let these things define him rather than grabbing his life by the bo!!ocks... You mention that you're more excited about the football season... arguably that is an even bigger contrast between the wealth and enjoyment of a few, versus the problems of the rest of the country. Plenty of people hate football and think THAT money could be used to far greater effect in the country... these conflicts arise all the time. Mostly there's nowt we can do about it except to moderate our own response. Link to comment Share on other sites More sharing options...
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