Sense from Balls? Could it be!?
Discussion
markcoznottz said:
Plus they had an election to win so take with a pinch of salt. Its almost, (almost but not quite) a shame Labour didnt get back in, to see them implement public sector cuts, in a heavily unionised sector that pays most of Labours bills. My that would have been entertaining.
I honestly don't think they would, I believe they would have called in the IMF for help and span it all away as the global recession.
Spending on VAT drops disproportionately quickly with income - the poorer you are the higher the proportion of your money that goes on zero-rated items like food.
A substantial drop, 30 - 40 pence, in fuel duty would have a universal impact as there is very little anyone does or buys that isn't in some way affected by transport costs.
A substantial drop, 30 - 40 pence, in fuel duty would have a universal impact as there is very little anyone does or buys that isn't in some way affected by transport costs.
So the thing that has caused all the problems here and around the world is National and Private DEBT.
But he wants to encourage people to spend more !! Hmmm sounds like a solution for the long term health of the economy..... NOT !!
Surely we should accept that we are going to have a recession and the longer we try to put it off the worse it's going to be.
The government should be cutting spending, and encouraging people to save and pay DOWN debt.
It's the only way to return the economy to health for the long term.
Balls is a massive C*CK !!
But he wants to encourage people to spend more !! Hmmm sounds like a solution for the long term health of the economy..... NOT !!
Surely we should accept that we are going to have a recession and the longer we try to put it off the worse it's going to be.
The government should be cutting spending, and encouraging people to save and pay DOWN debt.
It's the only way to return the economy to health for the long term.
Balls is a massive C*CK !!
crankedup said:
So your assessment = people ready and able to take on more debt! All of the current analysis shows that people are not spending and those with debt are making every effort to reduce that debt. Most are to frightened by job insecurity to take on more debt. A reduction in taxation will stimulate confidence and assist by getting the wallets open again, it is hoped.
I'd wager many people would simply use the extra cash to pay down their debts more rapidly rather than race out and go on a consumer spending binge. That's certainly my intention. I want the mortgage GONE just in case the s
t properly hits the fan.For a moment I wondered had Balls actually said something sensible, then I saw his comments and realised he was still talking Balls.
As most economic commentators pointed out at the time a temporary Vat cut is a very inefficient means of boosting the economy. Furthermore the time for temporary stimulus packages is past. It is in fact a typical Labour measure, costly to the public finances, imposing a significant admin burden on business, with minimal economic benefit.
Balls, and the BBC who treat him as some sort of economic guru, just don't get it. An economy can not achieve greater prosperity by piling on more and more debt, whether it be public or private.
Growth in the long term does not come from encouraging people to spend money they don't have on imported goods they don't really need.
As most economic commentators pointed out at the time a temporary Vat cut is a very inefficient means of boosting the economy. Furthermore the time for temporary stimulus packages is past. It is in fact a typical Labour measure, costly to the public finances, imposing a significant admin burden on business, with minimal economic benefit.
Balls, and the BBC who treat him as some sort of economic guru, just don't get it. An economy can not achieve greater prosperity by piling on more and more debt, whether it be public or private.
Growth in the long term does not come from encouraging people to spend money they don't have on imported goods they don't really need.
More sensibly they should bring forward the increase in tax free allowance.
VAT should stay as is, a consumption tax. There is too much profligacy and wanton waste around, everyone chasing ist products etc. Tax some sense into them.
The problem is debt. Not sure how reducing vat to encourage useless hedonistic consumption fixes that.
Bring forward the tax free allowance, lower earners will benefit disproportionately and the money is then able to be used to pay down debt OR consume at the discretion of the recipient.
Then its all consistent with public policy and wont be seen as a panic reaction or election bribe etc. Also of course the govt would never do as the opposition suggests.
£0.02
VAT should stay as is, a consumption tax. There is too much profligacy and wanton waste around, everyone chasing is
t products etc. Tax some sense into them.The problem is debt. Not sure how reducing vat to encourage useless hedonistic consumption fixes that.
Bring forward the tax free allowance, lower earners will benefit disproportionately and the money is then able to be used to pay down debt OR consume at the discretion of the recipient.
Then its all consistent with public policy and wont be seen as a panic reaction or election bribe etc. Also of course the govt would never do as the opposition suggests.
£0.02
Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff