Osborne: UK has run out of money

[Squiggs]

and we are not going into recession, so its all good so far.

 

The government teat sucking parasites are being starved off and the country is getting back to work. well done I say.

 

 

This discussion is about Britain on Planet Earth

 

I don't know what parallel world you are talking about?

[Longcol]

Prior to the bank crisis the debts run up by the last Labour government were similar to those of the Major administration.

 

http://www.guardian.co.uk/news/datablog/2010/oct/18/deficit-debt-government-borrowing-data.

[f0rd]

 

I eagerly await the inevitable comments from those who

 

[a] Think that the country's debt problems began in April 2010

The first started when Britain went cap in hand to the IMF in the 70s....

 

Think that living within your means is some kind of Tory trick

You do realise underconsumption and oversaving is just as bad right?

 

[c] That real growth can be achieved and paid for with borrowed money or with money created out of thin air.

So where does growth come from? I saw you waxing lyrical about Keynes earlier, take the marginal propensity to save - if we and the gov cut back then what does that lead to? Well the total income for companies will fall.

 

And what does that cause? A decrease in economic growth, which in-turn contributes to downsizing and fewer salary rises. In the end the country's total savings will have stalled at the same level or even declined because of lower incomes and a weaker economy.

 

 

This is not a "normal" recession but a major shift in the Western way of life.

 

 

LINK

 

Hardly some would even say this in the end in a cycle of a Kondratiev wave. Me, not so much

[Jim Graham]

Is clicking a link & reading it too hard? Here it is again... https://en.wikipedia.org/wiki/Keynesian_economics

 

 

 

I'm being selective am I? Vague Boy can't even quote a full sentence without it contradicting him.

 

I challenge you to find me a Keynes quote that says we should cut spending & increase taxes when the economy is in a bad state & we have high unemployment. It's the absolute opposite of everything that he said.

 

 

 

The economics of the left is always to try and fail to solve the short term problem especially when the short term problem is lack of votes. You only have to look at Sheffield to see how that works in practice. The economy of the city has declined but the debt has risen. Borrowing huge amounts has not solved the economic problems. Those financial wizards took a £140m debt for the World Stupid Games and turned them into a £650m debt costing £25 a year in interest for the forseeable future. The city's debt is now £2.1bn and rising. That's over £4,000 for every man woman child in the city. How is that ever going to be repaid?

 

You would do the same to the entire UK economy. Every man woman and child in the country is already paying more than £800 a year in tax just to pay the interest on what we have borrowed so far. You would have your great grandchildren paying off debt in 40 years time just to keep some fat, lazy chavs from having to cut down on beer, fags and chips today. It's utterly ludicrous. It's the economics of the madhouse. This generation caused the problem and should pay for it, not leave it to ruin the already uncertain futures of coming generations.

[f0rd]

*snip*

 

Seriously question since you totally avoided anywebsite's request.

 

Have you actually read any Keynes, or even Hayek's criticisms? Or is there another reason you failed in totality to supply a response to:

 

"I challenge you to find me a Keynes quote that says we should cut spending & increase taxes when the economy is in a bad state & we have high unemployment. It's the absolute opposite of everything that he said"

 

Or shall expect another two paragraphs of obfuscation?

[Jim Graham]

Prior to the bank crisis the debts run up by the last Labour government were similar to those of the Major administration.

 

http://www.guardian.co.uk/news/datablog/2010/oct/18/deficit-debt-government-borrowing-data.

 

 

 

Thanks for those figures that show very clearly that Brown did nothing to cut government spending for 2 years after he pushed the economy off a cliff in 2008.

[Jim Graham]

Seriously question since you totally avoided anywebsite's request.

 

Have you actually read any Keynes, or even Hayek's criticisms? Or is there another reason you failed in totality to supply a response to:

 

"I challenge you to find me a Keynes quote that says we should cut spending & increase taxes when the economy is in a bad state & we have high unemployment. It's the absolute opposite of everything that he said"

 

Or shall expect another two paragraphs of obfuscation?

 

 

 

Another two paragraphs you haven't understood.

 

Keynes didn't say you should cut spending and put up taxes in hard times because he never dreamed in his wildest economic nightmares of the stupidity of ending the good times with a debt of 150% of GDP.

[f0rd]

Another two paragraphs you haven't understood.

 

Keynes didn't say you should cut spending and put up taxes in hard times because he never dreamed in his wildest economic nightmares of the stupidity of ending the good times with a debt of 150% of GDP.

 

So thats a no you can't then.

 

I would ask where you gathered your insights of Keynesian economics from? But I don't think an answer will be forthcoming...

[Longcol]

Thanks for those figures that show very clearly that Brown did nothing to cut government spending for 2 years after he pushed the economy off a cliff in 2008.

 

Bank bailouts pushed the spend up from 2008 onwards - same reason as the currrent administration is running a deficit of over £100 million.

[Jim Graham]

Bank bailouts pushed the spend up from 2008 onwards - same reason as the currrent administration is running a deficit of over £100 million.

 

Wrong again. The banks were bailed out in 2008. Since then the borrowing has been to bail out the public services.