Here's the front of the Indie today (25/5) showing how far we still have to go on the deficit!
Meanwhile the Guardian does not seem to have noticed the cut back on Civil Service recruitment!
How long does it take to slow down a gravy train?
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
It must be like trying to turn around a supertanker....
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
that was a rather frightening graph.
And to think, it only took TB/GB 13 years to create it.
However "blue" your politics, I can laready see the nasty effects of the projected cuts on some public sector posts - and not the ones you'd like to see cut, but the ones we really shouldn't try to cut!!!!
Guest 651- Registered: 12 Mar 2008
- Posts: 5,673
Then colour in how much was spent bailing out private businesses (ie the banks)
Been nice knowing you :)
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
Paul - the deficit of £165bn is government spending going on now in excess of what the tax income is per annum. That is being compounded up and rolled up on top of the total debt and will double that debt to £1.4trillion by 2014.
If you add the off balance sheet debt to that this figure looks like being nearer £3trillion by 2014. That is nothing to do with the bank bail-out which is not a long-term problem as it will be re-paid through selling the shares in due course. It is government spending that is the real problem.
The £6bn cuts is no more than a small downpayment on reducing the overspend.
The £165bn overspend must be dealt with in three ways:
1/ Spending cuts to get to the root of the problem
2/ Tax rises (mostly already in the pipeline and announced by the previous govenment)
3/ Private sector growth - a priority for policymakers.
The ratio between cuts and tax rises is expected to be 4:1 with cuts taking the bigger slice. Less than half of the deficit will be dealt with by growth and must be reduced to close to zero by the time of the next cyclical recession in 7/8 years.
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
i see that italy has now jopined in the game by introducing austerity measures to cut their deficit, denmark has already done the same,. spain is planning the same.
i can only presume that gordon brown must have been the chancellor in these countries(plus greece).
Brian Dixon
- Location: Dover
- Registered: 23 Sep 2008
- Posts: 23,940
howard, are you calling gorden brown/darling a pigs.
Guest 655- Registered: 13 Mar 2008
- Posts: 10,247
At my seminar today we were looking at public sector balance as a percentage of GDP for major powers...
In round figures:
UK, 2009 - 14.5%. 2010 - 15% - in 1991 at the equivilent point in that recession it was c. 7.5%, almost exactly half what it is now.
USA, 2009 - 13.5%, 2010 - 13% - demonstrating that they have started withdrawing stimulus ahead of the UK
Germany - 2009 - 2%, 2010 - 4%
France - 2009 - 4%, 2010 5.5%
Italy - 2009 - 5.5%, 2010 5.5% (almost exactly the same)
This exposes some lies told by Labour that the Tories were alone in advocating the withdrawal of stimulus. The figures also go back to 2007 and shows how the UK were in the worse position of all 12 countries before the recession started.
Source@ Cazanove
But all we had to do was borrow some more money? That would surely solve all the problems
Barry, there's details of the austerity measures already planned for Portugal, Ireland, Italy,Spain and Greece here :-
http://news.bbc.co.uk/1/hi/world/europe/10162176.stm
I suspect that they give some foretaste of the forthcoming budget for the U.K.
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
no mention of gordon in them though bob, seems to me he is being victimised here by the blues.
Howard, you will note that ALL are either freezing or cutting public sector pay.
One wonders how the brothers will react to measures like this!
howard mcsweeney1- Location: Dover
- Registered: 12 Mar 2008
- Posts: 62,352
bob
the brothers will recline then observe with undisguised glee the chuckle brothers doing the dirty work.
I seem to remember that G K Chesterton said that cut-throat capitalism had left only three sorts of men in England - Knaves, Fools and Revolutionists.
Unfortunately the brothers seem to be all three at the same time!
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Living in a time warp eh? Is it any wonder the nation is in a state?
Been nice knowing you :)
