Osborne ' s emergency budget 5 months late?

[gordondaviesmoustache]

I think that spending our way out of the recession would have been ideal. It's one half of Keynesian economics, but I see it as dependent on the other half; running a surplus in the boom years. I know it seems ludicrous to keep blaming the economy on Labour when they've not held office for so long, but we are in an exceptionally difficult set of circumstances and the usual avenue to getting out of it isn't as open to us as it should be, and I put that on their doorstep.

Completely agree.

 

[Prestwich_Blue]

Don't agree with your assessment PB.

And although we haven't seen much substantive change (yet) as a result of Brexit, the drop in the value of the pound is certainly substantive and will drive up inflation over the coming months, putting pressure on interest rates on an already fragile economy. Not a great outlook imho.

You're right that there has probably been some impact due to the falling value of the pound and that will probably be felt more further down the line. That's why an increase in public spending is probably important.

 

[Len Rum]

Maybe they should have a whip around amongst the dreadful Tory toffs eh Len, to put the £58bn back. Dave and Gideon and his pals. I mean they can afford it can't they, the rich bastards who've thieved off us poor hard working underclasses for all these years. Solidarity brothers. Power to the people. etc etc etc.

<I thought I'd save you the bother typing your next post>

No actually I've been joking all along mate.
I know that the last Labour government borrowed 2/6d more than they should have, then they caused the global financial crash in 2008 and the Tories have been trying to sort out the mess ever since. If it hadn't been for the note from Reggie Maudling ( or was it Liam Byrne?) we might have had a chance but that really was the final straw.
And then on top of everything the Tories had the decency to call a referendum when there was really no need to and the people had the affront to vote for Brexit and now they've got to sort that mess out. Good grief.
And I tell you what else, if the Brexit negotiations go badly you know whose fault it will be don't you?
Not the Tories, but those beastly Europeans who won't gives us the economic deal to which we are entitled.
Gosh, it's a hard life Being a Tory isn't it?

 

[Len Rum]

I think that spending our way out of the recession would have been ideal. It's one half of Keynesian economics, but I see it as dependent on the other half; running a surplus in the boom years. I know it seems ludicrous to keep blaming the economy on Labour when they've not held office for so long, but we are in an exceptionally difficult set of circumstances and the usual avenue to getting out of it isn't as open to us as it should be, and I put that on their doorstep.

Still blaming Labour.
Desperate stuff mate.

 

[Chippy_boy]

No actually I've been joking all along mate.
I know that the last Labour government borrowed 2/6d more than they should have, then they caused the global financial crash in 2008 and the Tories have been trying to sort out the mess ever since. If it hadn't been for the note from Reggie Maudling ( or was it Liam Byrne?) we might have had a chance but that really was the final straw.
And then on top of everything the Tories had the decency to call a referendum when there was really no need to and the people had the affront to vote for Brexit and now they've got to sort that mess out. Good grief.
And I tell you what else, if the Brexit negotiations go badly you know whose fault it will be don't you?
Not the Tories, but those beastly Europeans who won't gives us the economic deal to which we are entitled.
Gosh, it's a hard life Being a Tory isn't it?

I could not have put it better myself. Apart from the Labour fuck up being 4 Trillion pounds, which is not exactly 2/6d.

 

[Len Rum]

The Government will have to borrow £58.7bn more by 2020 because of the Brexit vote, Office for Budget Responsibility figures show.Sky

Philip Hammond announces a worse-than-expected economic slowdown, blaming lower investment and weaker consumer demand.Sky

All the tories fault

Actually Robert Peston has tweeted that the effect of Brexit is a forecast deterioration in the public finances of £220 bn by the end of the Parliament.
Worth checking that one out.

 

[Len Rum]

I could not have put it better myself. Apart from the Labour fuck up being 4 Trillion pounds, which is not exactly 2/6d.

4 trillion??
WTF?

 

[The perfect fumble]

Still blaming Labour.
Desperate stuff mate.

What else can they do when they've scraped every barrel....

 

[kaz7]

Osborne cut too much too quickly.

It's well established that cutting government debt increases private debt, which is why a balanced budget is a complete nonsense. Every time the public finances have gone into surplus, there's been a recession a few years later. Therefore some level of public debt is not in itself a problem and is even highly desirable if not essential. The art is deciding what that level is.

In addition, increased public spending has a multiplier effect of something like 1.7, meaning that increasing public spending by £1bn can increase GDP by up to £1.7bn.

Osborne's obsession with achieving balance then a surplus caused the majority of the economic problems we now face. Brexit may introduce an additional element of uncertainty but as we're still a member of the EU then nothing substantive has changed

Thanks for the reply,debating politics is beyond me but i like to read and learn

 

[Len Rum]

National Debt to rise to 90% of GDP by 2017/18.
Rock on Phil.
Same as France.
And by 2020 govt debt will reach two trillion.
And they say Labour are the party of borrowing!

 

[Chippy_boy]

4 trillion??
WTF?

Indeed.

 

[Len Rum]

Indeed.

Any chance of an explanation of what your quoted figure of 4 trillion represents?

 

[Chippy_boy]

National Debt to rise to 90% of GDP by 2017/18.
Rock on Phil.
Same as France.
And by 2020 govt debt will reach two trillion.
And they say Labour are the party of borrowing!

I know Len, the solution to going increasingly further into debt, is, wait for it, SPEND MORE. That utter buffoon McDonell is spouting his wisdom as we speak. We're in this terrible position BECAUSE WE HAVEN'T SPENT ENOUGH. Sorry, I mean "invested" enough. Sounds better than spending.

Had we spent MORE, we'd now owe even less. Of course, why didn't the silly Tories realise that. Silly, naughty Tories.

 

[Chippy_boy]

Any chance of an explanation of what your quoted figure of 4 trillion represents?

Not really, you can google for yourself.

 

[aguero93:20]

I think that spending our way out of the recession would have been ideal. It's one half of Keynesian economics, but I see it as dependent on the other half; running a surplus in the boom years. I know it seems ludicrous to keep blaming the economy on Labour when they've not held office for so long, but we are in an exceptionally difficult set of circumstances and the usual avenue to getting out of it isn't as open to us as it should be, and I put that on their doorstep.

Fuck Keynesian economics mate, borrow in the boom and then when the shit hits the fan tighten the belt, right round everyone's necks. Cowards economics 101.

 

[Prestwich_Blue]

Thanks for the reply,debating politics is beyond me but i like to read and learn

Well you're female so that's only to be expected. So now you've read and learned, get in the kitchen and sort the tea out.

 

[kaz7]

Well you're female so that's only to be expected. So now you've read and learned, get in the kitchen and sort the tea out.

Jimbo is in there chained to the sink,i think he likes it lol

 

[grunge]

Not really, you can google for yourself.

It's 4tn if you include all liabilities and outstanding pensions, true debt is 1.6tn


It's like this headlines where footie players had there 5 years of salary included in the "price"

 

[kas_tippler]

Absolutly!

Only Labour can make Britain better off, putting hard working families first with a plan to tackle the cost-of-living crisis. And shorter waiting lists in the NHS. And higher taxes for other people.

Vote Labour (if you dare)

Absolutly!

Only Labour can make Britain better off, putting hard working families first with a plan to tackle the cost-of-living crisis. And shorter waiting lists in the NHS. And higher taxes for other people.

Vote Labour (if you dare)

Wouldn't make a jot of difference where I live .

 

[CityStu]

Fuck Keynesian economics mate, borrow in the boom and then when the shit hits the fan tighten the belt, right round everyone's necks. Cowards economics 101.

I absolutely agree - the situation we're in is shit. However, part 1 was a given when the coalition/Tories took over. They could either increase spending to borrow tons on top of excessive borrowing to start with, or they could try this belt tightening. I think that as shit as it is at the moment, the other scenario would cause much bigger problems further down the line.