Cameron Totally Out Of Touch.

[I1L2T3]

It's a pity that the penny didn't drop with Brown, and we went into the recession running a budget deficit. How can we spend our way out of recession when Brown had spent the money already?

 

We went into recession because of a banking failure, not because we had a deficit.

[JFKvsNixon]

Do you know one of your Tory mates? A certain turncoat ala Labour? Trevor kavanagh?

 

Perhaps you can reply to issues in my post.

[I1L2T3]

So how can you explain we were running a deficit before the bailout? Also was the bailout actually part of the deficit?

 

You are completely transfixed by the deficit. The deficit did not cause the recession.

[wednesday1]

So how can you explain we were running a deficit before the bailout? Also was the bailout actually part of the deficit?

 

If it hadn't been for the Tories mates the Bankers, the percentage of national debt to GDP would have been LESS than Labour inherited from the Cons.

[Rampent]

Perhaps you can reply to issues in my post.

 

Yes! I will! How come a hardcore Tory worshipper like Trevor kavanagh LOVED Gorden Brown in the boom years of Labour? And wrote of the Tories?

[SiSiSi]

The words Tory and Civil Unrest go hand in hand.

[speedbirdone]

You are completely transfixed by the deficit. The deficit did not cause the recession.

 

But if we wasn't running a deficit we may have been in a better position to see out the recession.

 

I personally would have liked Labour to have won the election last year, purely just to see how they would have handled the current situation we are in.

[Smithster]

We went into recession because of a banking failure, not because we had a deficit.

 

Yes, but had we not been running a deficit before the global recession, we would not have been affected by it anywhere near as much as we were.

 

Labour were not to blame for the global recession (well, perhaps their deregulation of the banking sector contributed in some way) - I grant you that. But the way they carried on spending in the blind belief that the bubble would never burst was uncomprehendingly reckless in the extreme. They might as well have gone down the bookies and gambled our entire economy on a 3-legged horse.

[Rampent]

The words Tory and Civil Unrest go hand in hand.

 

Too right. It always happens. A newer generation of berks have appeared, and never read the history of the last wreck of a Tory goverment.

[JFKvsNixon]

We went into recession because of a banking failure, not because we had a deficit.

 

On a superficial level yes but the true problem was that the UK's economy was built upon cheap credit. All the banking failure did was turn off this cheap credit, the economy was and still is left with nowhere to go.

 

It was the previous governments reliance on cheap credit to grow the economy underscored with their loose handling with the government's finances that has lead to this situation. If they had kept the finances under control like they did in the first half of their government we'd have been to spend more to ease the slow down.

 

As it is, the recent situation with the EU and the USA means that there really in other choice but to reign in spending as increasing our borrowing from the markets isn't an option anymore.