More stimulus?

[Fittster]

So it looks like the economic recovery is running out of steam. What do you think the authorities response should be?

Keep pumping money into the economy via QE and public works projects?

Cut back on public sector spending because it can't be afford, while hoping that the private sector picks up the slack?

Buy guns, cans of beans and prepare for the worst?

[XJ40]

I think that more QE should be used as stimulus only if we are really in ststreet and start to see deflation.

[V88Dicky]

Now is the time for massive tax cuts across the board, including fuel and VAT.
This should stimulate the economy and inject a bit of life into it.
Overall tax take would probably go up too.














Or I might just be talking cack.

[fido]

Can we have another option:- cut public spending AND cut corporation tax

[BigJonMcQuimm]

Do nothing and piggy back off the inevitable mega trillion euro QE round......

[Fittster]

fido said:

Can we have another option:- cut public spending AND cut corporation tax

Why corporation tax? If you want to cut taxes why not those that hit consumers such as VAT and income tax?

[FourWheelDrift]

3 simple steps to success.

1) Print £900billion of fake currency and give to our Chinese creditors to clear our current debt.
2) Make all public services "essential emergency services" to prevent striking, failure to comply comes under act of terrorism and we can shoot Bob Crow & Charlie Whelan.
3) Cut public sector operating costs to level we can affordably sustain to keep below our deficit levels.


Disclaimer, (1) this might be totally illegal and if they find out blame the Liberals. It was their idea.

[s2art]

The problem is that the banks cannot lend. They are being forced to up their capital ratios, and need to cover their debts.
In this situation some form of stimulus is desirable. I would suggest printing more money and simply putting into deposits at the banks at approx 3% return. The banks would then have to lend that money out to make sure that can pay the interest to the government. Everyone should win.

[thinfourth2]

Give all civil servants and council workers a 200% payrise. Tax anyone who earns more then £25k to death.

Make a workers utopia basically

Oh and emigrate

[elster]

Fittster said:

fido said:

Can we have another option:- cut public spending AND cut corporation tax

Why corporation tax? If you want to cut taxes why not those that hit consumers such as VAT and income tax?

As you want people to start business and to create jobs.

[Fittster]

elster said:

Fittster said:

fido said:

Can we have another option:- cut public spending AND cut corporation tax

Why corporation tax? If you want to cut taxes why not those that hit consumers such as VAT and income tax?

As you want people to start business and to create jobs.

But don't you want customers to have money in their pockets to spend at both new and old businesses?

[Bing o]

thinfourth2 said:

Give all civil servants and council workers a 200% payrise. Tax anyone who earns more then £25k to death.

Make a workers utopia basically

Oh and emigrate

P85 filled in today

[qube_TA]

Can't Bono and Geldof organise another concert to eradicate 3rd world debt?

We must qualify for it now?

[RichardD]

Fittster said:

elster said:

Fittster said:

fido said:

Can we have another option:- cut public spending AND cut corporation tax

Why corporation tax? If you want to cut taxes why not those that hit consumers such as VAT and income tax?

As you want people to start business and to create jobs.

But don't you want customers to have money in their pockets to spend at both new and old businesses?

Increasing VAT will hit the consumption of foreign imports so is a balancing act on a part of the economy which has become too big.

Lowering corporation tax is to avoid businesses leaving the country and maybe enticing some to even locate in the UK.

[Stu R]

I hear Ethiopia are holding a rock concert for us. Sad state of affairs really.

[FourWheelDrift]

Stu R said:

I hear Ethiopia are holding a rock concert for us. Sad state of affairs really.

I heard they were getting together food parcels to drop from planes over some parts of the country.

[RichardD]

FourWheelDrift said:

I heard they were getting together food parcels to drop from planes over some parts of the country.

Excellent, I'm only a few miles outside 'ull and I'm feeling rather peckish.

Nom nom nom.

(I just hope it isn't cider and burgers again though )

[JagLover]

We are still a long way away from the end of this depression.

Current weak growth, that is slipping again in the US, is an indication of the limitations of Keynesian methods to combat a recession caused by financial crises.

It will be a long slow path back to a healthy economy. The government needs to reduce the burden on the private sector by a) cutting state non jobs, b) combating excessive pay and pensions in the state sector c) cutting benefits expenditure. All the while encouraging private business and supporting the banking sector.

In General I think the current crises is a wake up call to so many western countries which have spent the good times overmanning the state sector (most of whom are on generous pay and pensions) and allowing a substantial proportion of the population of working age to live on state benefits.

[Fittster]

JagLover said:

It will be a long slow path back to a healthy economy. The government needs to reduce the burden on the private sector by a) cutting state non jobs, b) combating excessive pay and pensions in the state sector.

By cutting the number of state employees you are increasing the size of the dole queue and by reducing the pay/terms of the remaining employees you are reducing the amount of spending that takes place. Will that get you out of a depression or does it simply risk debt-deflation and mass unemployment.

I'm not sure the economy could handle the aggressive budget cutting some are calling for.

[OnTheOverrun]

Fittster said:

JagLover said:

It will be a long slow path back to a healthy economy. The government needs to reduce the burden on the private sector by a) cutting state non jobs, b) combating excessive pay and pensions in the state sector.

By cutting the number of state employees you are increasing the size of the dole queue and by reducing the pay/terms of the remaining employees you are reducing the amount of spending that takes place. Will that get you out of a depression or does it simply risk debt-deflation and mass unemployment.

I'm not sure the economy could handle the aggressive budget cutting some are calling for.

But every penny of the salary paid to state employees comes out of tax and every penny of the tax they pay and all the money they spend has already been paid to the govt in tax. It is a continuous cycle of recycling and re-spending the same tax over and over again. The only way out is new money, not recycled money. New money is generated by the private sector.