Fantasy Economics

[happy_renting]

OK, here's a challenge for all us armchair economists.

It's 1997. You are the Chancellor of the UK. You, in your infinite wisdom, foresee that there will be a global boom that will end in tears.

What steps do you take to ensure that the UK will be insulated from the eventual crash (avoiding the boom, if neccessary)?

[robo1968]

OK, here's a challenge for all us armchair economists.

It's 1997. You are the Chancellor of the UK. You, in your infinite wisdom, foresee that there will be a global boom that will end in tears.

What steps do you take to ensure that the UK will be insulated from the eventual crash (avoiding the boom, if neccessary)?

a) Include House prices in the calculations for inflation figures, if house prices go up and start rising at an alarming level the interest rates are increased accordingly to smooth out growth and prevent a bubble

look at what you have inherited, some reserves and a relatively good economy, seek to maintain a good spread of primary, secondary and tertiary industry through the U.K providing or keeping incentives for long term stability

c) maintain a healthy balance between private and pulic sector employment numbers

I am sure there are many many points but these spring to mind in 2 minutes

[King Stromba]

Spend spend spend?

[happy_renting]

a) Include House prices in the calculations for inflation figures, if house prices go up and start rising at an alarming level the interest rates are increased accordingly to smooth out growth and prevent a bubble

look at what you have inherited, some reserves and a relatively good economy, seek to maintain a good spread of primary, secondary and tertiary industry through the U.K providing or keeping incentives for long term stability

c) maintain a healthy balance between private and pulic sector employment numbers

I am sure there are many many points but these spring to mind in 2 minutes

Interesting start, but here you are outlining objectives and broad strategies, rather than HOW you would achieve these.

[shindigger]

OK, here's a challenge for all us armchair economists.

It's 1997. You are the Chancellor of the UK. You, in your infinite wisdom, foresee that there will be a global boom that will end in tears.

What steps do you take to ensure that the UK will be insulated from the eventual crash (avoiding the boom, if neccessary)?

Re-nationalise everything.

Thatchers "share owning democracy" did not work.

[Qetesuesi]

Retire into a corner, wait for the euro to blow over as an active political issue and prepare to return to the front benches in 11-12 years' time as Shadow Business Secretary.

[BXLONDONMAN]

Spend spend spend?

i see ...but he knows best,god to the bankers has saved the world !!!!

[time 2 raise interest rates]

OK, here's a challenge for all us armchair economists.

It's 1997. You are the Chancellor of the UK. You, in your infinite wisdom, foresee that there will be a global boom that will end in tears.

What steps do you take to ensure that the UK will be insulated from the eventual crash (avoiding the boom, if neccessary)?

I'd just tell everyone there would be no more boom and busts then when the sh*t hits the fan blame someone else,

but then i'm just a mikeman, what would i know.

Edited January 27, 2009 by time 2 raise interest rates

[Nelly]

Can I start by stabbing mandelson in the eyes with a fork that has some shlyt on it cos it goes septic and he f*ckin dies slowly <---- thats not an economy thing thats just a personal w @nk scenario

ontopic

Would tell the Eu to go f*ck its self, ****** Iraq, build a proper wall against scotland the theiving ginger kunts, oh test nuclear bombs on Wales just for fun

[SarahBell]

Probably leave the EU as it restricts what I can do.

Stop immigrant workers coming in until unemployment is about 0.25% -

Skilled workers - use migrant worker scheme like in Au.

Set private rents as same levels as council. Build more cheap rental and ownership housing.

Ensure security of energy supply, water supply, food supply, remove transport from the private sector (Buses, trains and trams are vital to cheap work environment)

I would ensure local energy supply was encouraged - solar systems, ground heat pumps, solar pv, and wind - all profits from gas & elec would be spent on repairing grid and then installing renewables ... I would aim for 75% by 2010 - ambitious maybe but with compulsory insulation and home improvements it could be done.

I'd tax anyone who drove their kid to school so much their ears would bleed.

I'd take away choice in education and health by ensuring ALL hospitals and schools met the same standards. I wouldn't impose a mad database system that was doomed to fail.

I'd ensure kids could be punished suitable and only rewarded for good behaviour.

I'd bring about conscription for kids who can't get through school. I'd also consider whether keeping kids at primary school until they can read and write to the standard required of an 11 year old.

Door step deliverys of milk, pop, eggs, bread etc would be encouraged in electric vehicles and using renewable materials. Local food would be an important factor.

I'd ban big brother and all the other reality crap tv that's suckered the young people into thinking jade goody is a role model.

I'd consider imposing a tax regime like the Moores did in spain - tax the non-believers more.

It'd probably be a bit of a mess - but hey look what they've done!

[robo1968]

Interesting start, but here you are outlining objectives and broad strategies, rather than HOW you would achieve these.

I would implement these by

a) Telling Eddie to include the average price in his figures, if he didn't like it I'd get the governemt to do the whole job.

Gordon Brown gave it straight to them in 1997

Support manufacturing by slappin g duty on products that compete with home grown/made goods

c) don't implement so many tiered layers of middle management in some many public sectors.

PLUS

like Sarah bell says

Ban big brother, Chris moyles and all the other s**te talking idiots our youth are exposed to

make essential services publicly owned and not there for profit making for shareholders.

[happy_renting]

Can I start by stabbing mandelson in the eyes with a fork that has some shlyt on it cos it goes septic and he f*ckin dies slowly <---- thats not an economy thing thats just a personal w @nk scenario

ontopic

Would tell the Eu to go f*ck its self, ****** Iraq, build a proper wall against scotland the theiving ginger kunts, oh test nuclear bombs on Wales just for fun

An original slant, but I suspect your Tourettes would prevent you getting elected in the first place.

I thought we DID ****** Iraq.

[Y-QUERK]

I would sell up and move to Tahiti.

[tim123]

OK, here's a challenge for all us armchair economists.

It's 1997. You are the Chancellor of the UK. You, in your infinite wisdom, foresee that there will be a global boom that will end in tears.

What steps do you take to ensure that the UK will be insulated from the eventual crash (avoiding the boom, if neccessary)?

With the benefit of lots of hindsight, you stop deposit taking banks from speculating with their own money.

But I doubt that anyone, looking forward from 1997, could see that this was going to be the problem that it is.

What could more reasonably be seen as needed is, some form of credit control which stopped demand ramping up house prices. Either a statutory max LTV or a max income multiple (or both). Oh and no releasing equity except to do work that adds value to the property (and possibly to provide retirement income, but that's its own can of worms).

I accept that some people will attempt to circumvent such statutory rules (just like they did in the 80s when BSs imposed their own, liquidity constrained, limits), but if it's made so that you have to jump hoops to do it, only a small percentage will try, instead of everybody!

tim

[robo1968]

With the benefit of lots of hindsight, you stop deposit taking banks from speculating with their own money.

But I doubt that anyone, looking forward from 1997, could see that this was going to be the problem that it is.

What could more reasonably be seen as needed is, some form of credit control which stopped demand ramping up house prices. Either a statutory max LTV or a max income multiple (or both). Oh and no releasing equity except to do work that adds value to the property (and possibly to provide retirement income, but that's its own can of worms).

I accept that some people will attempt to circumvent such statutory rules (just like they did in the 80s when BSs imposed their own, liquidity constrained, limits), but if it's made so that you have to jump hoops to do it, only a small percentage will try, instead of everybody!

tim

I am not sure about this, in 1999 I bought a place, in 2001 next door went for 50% more, from then on it was just a question of when this unjustified increase was gonig to fall. The longer the wait the the more people got convinced and bought in, the worse it was going to be.

We were having this conversations in 2000, it was obvious.

To add to that, the current vluation is 2.7 times what i paid....totally ridiculous

Edited January 28, 2009 by robo1968

[porca misèria]

OK, here's a challenge for all us armchair economists.

It's 1997. You are the Chancellor of the UK. You, in your infinite wisdom, foresee that there will be a global boom that will end in tears.

What steps do you take to ensure that the UK will be insulated from the eventual crash (avoiding the boom, if neccessary)?

Reform the tax system. Much lower taxes on hard-earned money and productive business. Make up the difference with higher taxes on destruction, pollution, speculation, and highly-limited non-replaceable resources (land).

The stimulus for the bubble was the absurd situation where unproductive property speculation was - and is - taxed less than investment in the productive economy, let alone working for a living. The tax system could fix that. As a bonus, we could then have low interest rates to benefit industry without giving most of the money to parasites.

[edit] Oh, and stop meddling with interest rates. Let the market set them. But I wouldn´t have realised at the time just how dangerous the myth of a centrally-determined interest rate can be, so that only works with the benefit of a time machine.

Edited January 28, 2009 by niq

[KingBingo]

OK, here's a challenge for all us armchair economists.

It's 1997. You are the Chancellor of the UK. You, in your infinite wisdom, foresee that there will be a global boom that will end in tears.

What steps do you take to ensure that the UK will be insulated from the eventual crash (avoiding the boom, if neccessary)?

Point a), from the first guy to reply was correct. Everything else was wrong.

[InternationalRockSuperstar]

What steps do you take to ensure that the UK will be insulated from the eventual crash (avoiding the boom, if neccessary)?

1) abolish the Bank of England and bulldoze its building in Threadneedle St.

2) dismantle all of the state piece by piece.

3) resign.

[Oh Dear]

Get rid of working families tax credit and 10% tax band to £15,000.

Set inflation target based on RPI.

Housing benefit ceases to exist with higher level of jobseekers allowance to compensate (but 1/4 rate for those still living at home with family).

No PFI

[robo1968]

Point a), from the first guy to reply was correct. Everything else was wrong.

it's one thing preventing one of the causes (which is hardly rocket science) but we are now in a very weak position because we have not encouraged manufacturing or protection like other nations. Added to that, we have spent ridiculous amounts on the public sector.

[KingBingo]

it's one thing preventing one of the causes (which is hardly rocket science) but we are now in a very weak position because we have not encouraged manufacturing or protection like other nations. Added to that, we have spent ridiculous amounts on the public sector.

Agreed on public sector. But protectionism would be a disaster. Customers should decide which businesses survive, not government.

Besides manufacturing makes up 12.5% of GDP, its hardly as small as people make out. Its more than the city of London ever was.

[robo1968]

Agreed on public sector. But protectionism would be a disaster. Customers should decide which businesses survive, not government.

Besides manufacturing makes up 12.5% of GDP, its hardly as small as people make out. Its more than the city of London ever was.

for one that experiences this, charge duty similar to that of u.k products entering their country, in other words a level playing field....you try sending sometihng to china without paying massive duty while in the meantime we swallow their goods voraciously

12.5 gdp, it should be more, when we emerge out of this debacle how much crediblity will our financial industry have on the world stage?

Do you think the chinese who are busy churning out 750000 graduates a year are content making trainers? We need to be more aware, they will want much more of this action and they will get it thanks to our shortsightedness (not sure if that's a word)

[Ruffneck]

keep interest rates high , making the pound worth more , thus helping our exporters and balancing our books...

oh....wait...

it had to be a global perogative regarding interest rates

tighter lending practices would have helped though

[silver surfer]

OK, here's a challenge for all us armchair economists.

It's 1997. You are the Chancellor of the UK. You, in your infinite wisdom, foresee that there will be a global boom that will end in tears.

What steps do you take to ensure that the UK will be insulated from the eventual crash (avoiding the boom, if neccessary)?

Join the Euro

[EndToBoomandBust]

Re-nationalise everything.

Thatchers "share owning democracy" did not work.

Can you give me one example where this has worked?