Friday, Aug 21, 2009

More spending is need for recovery

Bloomberg: Darling Says U.K. Recovery at Risk, Treasury Must Keep Spending

The comments are aimed at challenging Conservative Party leader David Cameron’s suggestion that the Labour government is damaging the economy by running up too much debt. Already BoE has printed 5 years of VAT revenues how far can they go before election?

Posted by mander @ 10:52 AM (609 views) Add Comment

6 Comments

1. fahrenheit451 said...

Good Grief "Charlie Brown". We are being led by people with the intelligence of cartoon characters. If he is worried about the cost of imports, then the problem lies with the exchange rate. (Both UK and US) And a crashing economy and increasing public debt with only make matters worse.

Good impression of an Ostrich I think.

I wonder what this is really about, … deflecting the news about the economy, perhaps.

See "The first pieces of the inflation puzzle are exposed" previous blog ...

Friday, August 21, 2009 11:05AM Report Comment
 

2. Paul said...

See "The first pieces of the inflation puzzle are exposed" previous blog ...

Eh? What?

The government definitely needs to spend - the only problem is that they didn't save when times were good, but cutting sharply now would be a disaster, swelling the unemployed into 15-20%.

Spending more is bad, but not spending more is much much worse.

Friday, August 21, 2009 11:09AM Report Comment
 

3. paul said...

See "The first pieces of the inflation puzzle are exposed" previous blog ...

Eh? What?

The government definitely needs to spend - the only problem is that they didn't save when times were good, but cutting sharply now would be a disaster, swelling the unemployed into 15-20%.

Spending more is bad, but not spending more is much much worse.

Friday, August 21, 2009 11:10AM Report Comment
 

4. mark wadsworth said...

Doesn't it depend what they spend it ON?

Sure, the government could create a few million make-work jobs (oh ... they already did that) which might mask unemployment but only delay the problem.

Wouldn't it be better to minimise losses of existing jobs by subsidising them, or even better, by simply scrapping Employer's NIC (cutting cost of employing people by about 11%)?

Friday, August 21, 2009 11:40AM Report Comment
 

5. mander said...

mark wadsworth,

It is not most of the printed money used to prop up the housing market? What sort of projects to create jobs are they preparing that we know of?

Friday, August 21, 2009 11:54AM Report Comment
 

6. mrmickey said...

At the end of the day the government is just doing it's job it's trying to keep favoured businesses going and keep people in jobs by bailing everybody out. This will work in the short term but long term it will destroy the economy, by then it won't be their problem.

Friday, August 21, 2009 02:55PM Report Comment
 

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