Economy slowly improving

[I1L2T3]

What was causing it to grow?

Was it debt by any cance?

 

It's not growing now and the debt continues to increase, much of the borrowing being used to support a high level of unemployment and unsustainable housing market.

 

It would be better to borrow to stimulate growth rather than borrow to support failure.

[El Cid]

What was causing it to grow?

Was it debt by any cance?

 

Yes, pumping money into the economy is bound to make it grow.

 

And now we have the oppossite, paying back debt shrinks the economy; just like it would do to a families budget. But we are only talking about minor adjustments, the real hardship is rising prises but wages stationary.

[I1L2T3]

Yes, pumping money into the economy is bound to make it grow.

 

And now we have the oppossite, paying back debt shrinks the economy; just like it would do to a families budget. But we are only talking about minor adjustments, the real hardship is rising prises but wages stationary.

 

But the government is not paying back debt. It is increasing the debt at levels way beyond what was forecast.

 

The deficit is forecast to increase.

[maxmaximus]

But the government is not paying back debt. It is increasing the debt at levels way beyond what was forecast.

 

The deficit is forecast to increase.

 

But it is borrowing less each year and the main driver of the economy isn't the government, it’s the population and we aren’t spending as much as we did, private debts are lower because fewer people are buying houses at extortionate prices; remember it was a housing bubble that gave us growth. People that buy houses buy other things and when the housing market stalled so did the economy. An economy built on unsustainable private and government debts, and excessive growth in house prices was always going to fail, and now we have to live with the consequences of that unsustainable debt for a couple of decades.

[El Cid]

 

The deficit is forecast to increase.

 

All the claims by different politicains make it difficult to understand, which way its going, up or down. Have you got a link, from a trusted organisation?

I thought that the debt had come down by almost 25%?

[wednesday1]

But the government is not paying back debt. It is increasing the debt at levels way beyond what was forecast.

 

The deficit is forecast to increase.

 

 

The real pain I think for many will be next year when councils & other public sector bodies which have managed to make economies through natural wastage and other initiatives are unable to save any more money without having to wield the axe.

 

---------- Post added 24-03-2013 at 15:01 ----------

 

All the claims by different politicains make it difficult to understand, which way its going, up or down. Have you got a link, from a trusted organisation?

I thought that the debt had come down by almost 25%?

 

 

I think the ConDems figs are usually a bit dodgy.

[El Cid]

 

I think the ConDems figs are usually a bit dodgy.

 

The Office for National Statistics said the public sector current budget deficit was £1.1bn in February - this is a £7.1bn lower deficit than the same time last year

 

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

[I1L2T3]

All the claims by different politicains make it difficult to understand, which way its going, up or down. Have you got a link, from a trusted organisation?

I thought that the debt had come down by almost 25%?

 

You can read up about it all over the web. But I'll explain briefly. There are two measures:

 

1. The debt. This is the amount the government owes. This is increasing.

 

2. The deficit. This is the difference between what government spends and what it received in years when it spends more than it receives.

 

In very basic terms the debt increases each year by the amount the government overspends.

 

As the government is running a deficit the debt has not been reduced by 25% or even by a tiny fraction of 1%. Cameron was recently admonished by the OBR for claiming that the debt is reduced. Cameron was either lying or he is economically illiterate.

 

What the government is actually claiming is that they have cut the deficit by 25%. This claim in itself is questionable.

 

---------- Post added 24-03-2013 at 16:23 ----------

 

The Office for National Statistics said the public sector current budget deficit was £1.1bn in February - this is a £7.1bn lower deficit than the same time last year

 

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

 

You missed the bit about gilt interest and the mobile contracts auction.

[Hillpig]

morning xenia maybe people dont want to work to 70 (unlike some security guards).open your eyes mate the gov move goal posts to suit themselves. the pension/benefits cuts are affecting millions of people yet some its not affecting at all (i wonder who the some are ) no prizes for guessing

 

Im sorry I dont understand your answer,which goal posts? What pension cuts? Who is affected? who are those who are not affected?