Economy Shrinks 0.5%

[wednesday1]

Lol, so the Labour government wasn't responsible for running the economy, so who do we hold accountable then?

 

Also Labour's only plan to take us out of recession was to borrow money that nobody wanted to lend us. Even this shadow cabinet has learned their lesson and quietly dropped this plan, the problem is that they do not know what to replace it with.

 

What cuts would you make?

 

 

 

I never said Labour weren't responsible for running the economy, but it wasn't Labour who presided over the destruction of the UK's manufacturing base in the 1980's, was it?

 

Labours plan to take us out of recession was to make some cut's but do it over a longer period of time.

 

One thing I would do would be to reintroduce Labour's bank bonus tax for a start, close loppholes for tax exiles.

I think alot of money could be saved in the NHS by cutting the pay of doctors and consultants who and other staff who earn six figure salaries.

[Bigthumb]

Well our economy was predisposed to a bigger downturn than the rest of our European counterparts due to our reliance on the service sector ie property speculation and financial services. We all know under whom this started.

 

Give you a clue, Milk Snatcher.

 

I know you like to say that, and for all I know you might even believe it, but the facts just don't back you up.

 

In 1997 UK production of steel was rising year on year and peaked that year at 18.5 million tonnes. After 13 years of Labour government it was falling year on year and in 2009 was a mere 10.1 million tons. Labour had presided over a 45% reduction in UK steel production

 

In 1997 Britain produced more that 1.7 million motor cars, which was nearly double what was being produced here in 1980. Again by 2009 our output had halved to barely 800,000 cars built, with many manufacturers moving out of the UK and taking production and jobs with them.

 

Even in mining which is so dear to the hearts of some folk around here. Since 1997 60% of the pits have shut and we now import most of our coal from overseas.

 

So to hear that manufacturing industry is actually growing is something we should rejoice in after 13 years of decline. I even think the stock market has risen to reflect this.

[andyofborg]

Well our economy was predisposed to a bigger downturn than the rest of our European counterparts due to our reliance on the service sector ie property speculation and financial services. We all know under whom this started.

 

Give you a clue, Milk Snatcher.

 

gordon and ed didn't do much to change that did they

[TeaFan]

You Tories and Labourites are as bad as each other. If the economy is doing well when your lot are in office you claim the credit, if it does badly you blame the global economy. When out of office you claim it is the other lot's fault if it's going badly and claim it's all down to the foundations you laid last time when it's going well.

 

The rest of us hate your guts, hadn't you realised?

 

Capitalism is a car that drives itself, politicians and economists are just riding in the back seat. You're all as bad as each other and I long for the day when we can do away with you.

[dell12]

 

Capitalism is a car that drives itself, politicians and economists are just riding in the back seat. You're all as bad as each other and I long for the day when we can do away with you.

 

I tend to agree.

 

If Thatcher hadn't done away with alot of industry it would have been Major or Blair simply as Britain could not compete in a global capitalist market in terms of price. I think the way the government has treated banks is proof enough of your point.

[I1L2T3]

I hope this does not sway Osbourne & Co from making the cuts. Whatever happens to the economy, the government still has to bring down its expenditure and start to live within its means, can't go on spending on the never, never and bequething the debt for generations to come.

 

There will still be cuts but they might need to scale back a bit if they have any sense at all. You have to remember at the same time that even with the planned cuts government spending is increasing year on year.

 

But given that the ConDems haven't actually cut very much so far, it looks like they've over-egged the pudding somewhat and talked the country to the precipice of a recession. Their upcoming cuts and the VAT increase will take us there. Negative growth, reduced confidence, businesses failing, increased unemployment, lower tax receipts, more benefit spend, uncontrolled inflation, stagnating wages, weakening pound, devastated public services...............welcome to everything you ever wanted. And more

[Vague_Boy]

Well ideological cuts across the board, job losses, high inflation plus tax rises are hardly the recipe for a growing economy are they? All stick and no carrot.

 

A growing economy shouldn't rely on deficit spending and creating £200 billion of phantom money out of nowhere (quantitative easing) in order to function. That's the main reason we had positive GDP figures early on in 2010.

 

Within 4 years, every 10p we pay in tax will go towards the interest on our national debt (link). Not the debt itself, just the interest.

 

Our current interest payments would cover the cost of national defence (link).

 

And that's with low interest rates. As they rise (and they will) the situation will only get worse.

 

UK's total debt forecast to hit £10 trillion by 2015

 

And you want to continue the borrowing?

[Tomataheeed]

I know you like to say that, and for all I know you might even believe it, but the facts just don't back you up.

 

In 1997 UK production of steel was rising year on year and peaked that year at 18.5 million tonnes. After 13 years of Labour government it was falling year on year and in 2009 was a mere 10.1 million tons. Labour had presided over a 45% reduction in UK steel production

 

In 1997 Britain produced more that 1.7 million motor cars, which was nearly double what was being produced here in 1980. Again by 2009 our output had halved to barely 800,000 cars built, with many manufacturers moving out of the UK and taking production and jobs with them.

 

Even in mining which is so dear to the hearts of some folk around here. Since 1997 60% of the pits have shut and we now import most of our coal from overseas.

 

So to hear that manufacturing industry is actually growing is something we should rejoice in after 13 years of decline. I even think the stock market has risen to reflect this.

 

I can't speak for the other industries, but the car industry figures you mention miss the important bits. Long before 1997, the UK basically became a place to assemble cars. The design and engineering expertise went long before. We are merely a location to assemble cars when its convenient. When it isn't convenient for reasons to do with local tax breaks, exchange rates etc, the factories get closed again. We don't have a volume car industry any more, just a few assembly plants....sometimes.

[Mecky]

I hope this does not sway Osbourne & Co from making the cuts. Whatever happens to the economy, the government still has to bring down its expenditure and start to live within its means, can't go on spending on the never, never and bequething the debt for generations to come.

 

Why can't we?

[Mecky]

gordon and ed didn't do much to change that did they

 

Did they ever blame snow to explain the lack of consumerism?