JFKvsNixon Posted August 7, 2011 Share Posted August 7, 2011 Maybe. The choices are pretty stark: 1. Increase public debt by throwing public sector workers on the dole. Risking that tipping point (8% unemployment) where the inherent welfare costs make ongoing structural deficit inevitable. The only way out of that is strong private sector growth which if we're honest simply is not happening. 2. Increase spending on public services, preferably public infrastructure, to try and spark the necessary growth. But as you say that involves more borrowing. We really are in a hole. Do you think that the markets will be happy to lend us the money, taking in the global situation? Link to comment Share on other sites More sharing options...
I1L2T3 Posted August 7, 2011 Share Posted August 7, 2011 Do you think that the markets will be happy to lend us the money, taking in the global situation? Of course. Both Osborne and Cable have helpfully pointed out in the last few days that we are a safe haven, a calm port in stormy seas. Where better place to invest? Link to comment Share on other sites More sharing options...
JFKvsNixon Posted August 8, 2011 Share Posted August 8, 2011 Of course. Both Osborne and Cable have helpfully pointed out in the last few days that we are a safe haven, a calm port in stormy seas. Where better place to invest? I take that as a no then. So really then there is no option than to cut spending? Link to comment Share on other sites More sharing options...
Jim Hardie Posted August 10, 2011 Share Posted August 10, 2011 Thank you,kind sir. Psst whats it mean ? To reduce by one tenth. Link to comment Share on other sites More sharing options...
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