Why will the debt get worse despite the cuts?

[tubbystu]

s3fella said:

Maybe we can sell the Queen?

But she already works a couple of days a week as a ground worker.

Her PPE needs some attention though

[Mr Dave]

Can someone put all this into figures we can relate to.

Ie in proportion to an income of 30k per year how big the deficit is, what size the cuts are and how big the national debt is? That would make it easier to understand.

[Sonic]

Mr Dave said:

Can someone put all this into figures we can relate to.

Ie in proportion to an income of 30k per year how big the deficit is, what size the cuts are and how big the national debt is? That would make it easier to understand.

5 million people earning 30k/year gross is about equal to the structural deficit.

26.66 million people earning 30k/year gross is about equal to the national debt.

So if 31.66 million people (what's that? half the country?) earned £30k/year each and paid it all in tax, in addition to all that is currently paid, then we'd have no national debt on the face of it.

Problem is, even after that, 3.4 million people would still need to earn £30k/year and pay it all in tax, again ontop of what is currently paid, just to stop us racking up more national debt.

[elster]

BoRED S2upid said:

Elroy Blue said:

ralphrj said:

1. Zimababwe 282.6%
6. Italy 115.2%
16. France 77.5%
19. Germany 72.1%
22. UK 68.1%
47. USA 52.9%
109. China 16.9%

But we can be proud. We give aid to China

22nd isn't too bad. Giving aid to China is completely mad. I hope this is going to be addressed by this government?

However that doesn't include all the PFI, or the pension pot.

So once you add on all the schools/hospitals/etc that have been built we come a bit higher.

Edited by elster on Wednesday 20th October 16:11

[El Guapo]

elster said:

However that doesn't include all the PFI, or the pension pot.

So once you add on all the schools/hospitals/etc that have been built we come a bit higher.

Indeed, total accumulated national debt including the off-balance items is currently approaching £4 trillion (that's £4,000 billion), rather than the £900 billion official figure.

[jeff m]

Well in MVHO the debt will get worse because "there is nowhere to go".
I assume everyone is aware debt service is interest only, it isn't a mortgage Everytime you dip in it increases.
Quantative easing, the lowering of interest rates etc, may have actually made the situation worse. There have been lots of people jumping into low adj rate mortgages and creating more debt, albiet secured, but secured in a fragile real estate market.
Without googling I'm guessing the national UK houshold debt is the wrong side of 150%. Different to national debt but quite important to the UK situation. (Japan is worse and the US is better, usually)
Interest rate reduction is usually a tool used to "get things going", this time it has moved thousands of people into very precarious positions with regard to their own personel debt.
Even if the economy moved, it has a little, and things improved the BOE would have its hands tied as it could no longer increase the interest rates to curb inlation as it would cause a lot of mortgage defaults, and bang goes the recovery.
The Gov is scrambling to wring every ounce of blood (tax) out of its donors who have become pale and anaemic
So get ready for the Pound to drop in value. (long term)

Personally I wouldn't worry about there is screw all you can do, I've always found a few beers really help.

Just my personal take on the situation.

Tip...overpay those low rate mortgages.

[captainzep]

Gargamel said:

As ever with Politicians - take a look at what is not being cut.

NHS - it's clearly unaffordable. Cut it

NHS is being cut. The inflation in healthcare costs is significant. Steady state funding (or even the .1% increase) doesn't cover the rising costs. The NHS is a victim of its own success. People don't die from the heart attacks and strokes like they used to. So they live much longer with much higher health needs (££££), taking new wonder drugs (££££) and benefitting from brand new models of care (££££).

We're apparently losing 80 posts out of 400 this year just to make management cost savings. Then my organisation ceases to exist in 2013.

Services are already being cut, largely due to vacancies not being recruited into. Which often means fewer health staff to see you. After that, services which are not seen as priorities may see 'disinvestment'. For example, whilst walk-in centres and Minor Injury Units are under-used (people prefering to go (unnecessarily) to A&E instead), PCTs will shrug and reduce opening hours or even shut them.

The reality is that whilst the Pistonheads taxi rank moans on at pen-pushers, bean counters and transgender knitting technician project managers, the savings required go way, way beyond several thousand 'back office' redundancies.

As I've said in previous posts the real question is which future Govt. will be brave enough to ditch the NHS and go to a insurance based system.

[markcoznottz]

anonymous said:

[redacted]

Lies and damn you know whats.... Our total national debt is nearly the same as Americas,on the info Ive read. However it must be almost impossible to compare debt of differing countries, when for example even we cant decide what ours is. Does it really matter then, or does it only matter what others think your debt is.

Maybe it only matters how likely it is that a country will repay its interest payments, which is what our AAA credit rating is.

[JagLover]

BoRED S2upid said:

Elroy Blue said:

ralphrj said:

1. Zimababwe 282.6%
6. Italy 115.2%
16. France 77.5%
19. Germany 72.1%
22. UK 68.1%
47. USA 52.9%
109. China 16.9%

But we can be proud. We give aid to China

22nd isn't too bad. Giving aid to China is completely mad. I hope this is going to be addressed by this government?

That is 22nd now. We have the largest deficit of any major western economy and it will not be long before we ofertake Germany and France.


If Labour have their way we will overtake Italy as well!

[Lost_BMW]

Gargamel said:

As ever with Politicians - take a look at what is not being cut.

NHS - it's clearly unaffordable. Cut it

Europe - Tony Blair made a decision to put more in, cut it back again.

Foriegn Aid - A NO BRAINER, Cut it or put it into disaster contingency.

Council, Local Government, Regions, European Parliament, Lords, Commons - WAYYYY too many levels - cut out the Regional authorities, trim the commons to 400, and the HOL to a similar number.

Benefits - Tough one this, but basically JSA/IS for six months - then NO MORE until another two years of NIC have been paid.

Plus c. £5 billion on climate change.

[Pageo]

I did hear on the Radio that the Annual £25million a month payments to Russia and China would be scrapped. I personally think that all foreign aid should be cut and we should pull out of the £4m? £40m? a day being in the EU!

Im not sure whether we pay £4m or £40m! im sure someone will enlighten me!

Edited by Pageo on Friday 22 October 01:18