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Will Economy Have Recovered In Time For Labour To Pick It Up Again?

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Just a thought, looking back at history, the UK economy had been through the recession and deficits etc were cut down to good levels just in time for Nu-Labour to pick it up in 1997 and create a fine old mess.

The question is what do people think this time round? - Will the deficit and economy return to a decent shape by 2015 for Re-Nu-Labour to pick it up and spend away?

My fear is that people will see the austerity done by the Tories and Lib Dems and will never vote for them again. Thus bringing on a spending spree in 5 years time, and the whole cycle will start all over again... :angry:

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Just a thought, looking back at history, the UK economy had been through the recession and deficits etc were cut down to good levels just in time for Nu-Labour to pick it up in 1997 and create a fine old mess.

The question is what do people think this time round? - Will the deficit and economy return to a decent shape by 2015 for Re-Nu-Labour to pick it up and spend away?

My fear is that people will see the austerity done by the Tories and Lib Dems and will never vote for them again. Thus bringing on a spending spree in 5 years time, and the whole cycle will start all over again... :angry:

I doubt the deficit problem will have been resolved completely by 2015. That would involve absolutely savage cuts in public spending of around 25% over the next two years, which would too difficult to enforce or even get through parliament. It would also mean a very hard bump to the economy. Although it could put us on a road to recovery, it may also damage some sectors greatly. The problem is that the deficit and current national debt which is rising rapidly, are soooooooo biiiiiiiiiig that even cuts of 10% will not stop us ending up like Greece by 2015 - ie with a national debt which is no longer serviceable and which the markets do not believe can ever be paid back. That said, we will be hearing over and again how it came to pass and is in no small part the fault of Brown as chancellor to run such a profligate ship before there was a recession and just how irresponsible that is. Deficits are for recessions and surpluses should arise in the good times - like they were left with in 1997 - let's not forget there WAS a surplus in 1996-7 of £40BILLION. Where did it all go Gordon????!!!!!!!

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Just a thought, looking back at history, the UK economy had been through the recession and deficits etc were cut down to good levels just in time for Nu-Labour to pick it up in 1997 and create a fine old mess.

The question is what do people think this time round? - Will the deficit and economy return to a decent shape by 2015 for Re-Nu-Labour to pick it up and spend away?

My fear is that people will see the austerity done by the Tories and Lib Dems and will never vote for them again. Thus bringing on a spending spree in 5 years time, and the whole cycle will start all over again... :angry:

This is likely to be a very long haul indeed. Don't forget a lot of the deficit is structural not cyclical and this will be much more difficult to correct and, even if successful, will take much longer than five years; and this assumes a benign political environment, and expecting that is akin to whistling in the wind imo.

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Just a thought, looking back at history, the UK economy had been through the recession and deficits etc were cut down to good levels just in time for Nu-Labour to pick it up in 1997 and create a fine old mess.

The question is what do people think this time round? - Will the deficit and economy return to a decent shape by 2015 for Re-Nu-Labour to pick it up and spend away?

My fear is that people will see the austerity done by the Tories and Lib Dems and will never vote for them again. Thus bringing on a spending spree in 5 years time, and the whole cycle will start all over again... :angry:

I think you need to get your facts straight.

See link; this clearly shows that the budget was under control by Labour up until 2007. In fact the deficit was about the same as under the Tories at 35%. The Tories were mostly in the red last time around.

I was the banks wot done it!! Until people acknowledge this then we're likely to go down the wrong road - ie drastic cuts as DC is planning now.

http://www.guardian.co.uk/news/datablog/2010/apr/22/uk-deficit-government-borrowing

Very good graph - worth a look.

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I think you need to get your facts straight.

See link; this clearly shows that the budget was under control by Labour up until 2007. In fact the deficit was about the same as under the Tories at 35%. The Tories were mostly in the red last time around.

I was the banks wot done it!! Until people acknowledge this then we're likely to go down the wrong road - ie drastic cuts as DC is planning now.

http://www.guardian.co.uk/news/datablog/2010/apr/22/uk-deficit-government-borrowing

Very good graph - worth a look.

It is a very good graph and it clearly shows that Labour had lost control of spending. The second graph is net debt as a percentage of GDP. During the years 2001 to 2007 GDP was growing every year yet the countries net debt was growing even faster i.e the Labour govt was spending recklessly with no worries about the future. The classic "I have abolished boom and bust."

The graph clearly shows that in previous economic good times the debt as a percantage of GDP fell considerably and then was allowed to rise during the recession as the automatic stabalisers kicked in to combat the recession. During the boom times labour inceased spending as a percentage of GDP by about 7% points. On a 1.4 trillion GDP this is about 98billion pounds. So if labour had just spent the increases in revenues that came from the economic growth we would have a deficeit this year of 143 - 98 = 45 billion quid.or 3.2% of GDP and we still could have have shool buildings, more nurses etc, just at a slower rate (a sustainable rate).

But because Brown broke his own 40% "Golden Rule" spend all the growth money and then borrowed another 7% of GDP per year we are going to have austerity, cuts and hard times and we are in a real econmic mess.

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I am with flapjack on this. In fact, the recent borrowing figures are better than expected because of inflows from the banks we own. That investment should come good some day.

It was the banking crisis which caused the problems and as the UK let them get so big a part of the economy, that is why we are hurting.

Anyway, five years is not the timespan for the Libcons. Think more like a year, tops.

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I think you need to get your facts straight.

See link; this clearly shows that the budget was under control by Labour up until 2007. In fact the deficit was about the same as under the Tories at 35%. The Tories were mostly in the red last time around.

I was the banks wot done it!! Until people acknowledge this then we're likely to go down the wrong road - ie drastic cuts as DC is planning now.

http://www.guardian....nment-borrowing

Very good graph - worth a look.

Could you learn the difference between DEBT and DEFICIT please if you are going to try and defend Labour's record.

Your graph shows that the budget was fine until 2000-2001 and the dot com crash.

After that Gordon spent more than he should every single year, papering over the cracks in the private sector with easy credit and increased government spending.

Public-spending-graphic-001.jpg

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I think you need to get your facts straight.

See link; this clearly shows that the budget was under control by Labour up until 2007. In fact the deficit was about the same as under the Tories at 35%. The Tories were mostly in the red last time around.

I was the banks wot done it!! Until people acknowledge this then we're likely to go down the wrong road - ie drastic cuts as DC is planning now.

http://www.guardian.co.uk/news/datablog/2010/apr/22/uk-deficit-government-borrowing

Very good graph - worth a look.

What a load of twaddle. The table shows 2 period in the last 30 years when we managed to balance the budget and produce a surplus. In the late 80's under the Tories and around the millenium following Gordon's explicit promise to stick to Tory spending plans for 3 years to try to prove his prudent fiscal credentials. Then, despite a period of high growth he managed to produce annual deficits in excess of £30 billion every year for the next 6 or 7, adding £200 billion to our national debt during a period of boom. When the downturn came he espoused that it was the right thing to do to maintain high spending through the recession, on top of bailouts and stimuli, thus adding further to our debts to the tune of in excess of £300 billion.

If you can not recognise this, you are deluded.

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The question is what do people think this time round? - Will the deficit and economy return to a decent shape by 2015 for Re-Nu-Labour to pick it up and spend away?

No doubt Camlegg will be blamed for everything. C'est la vie. However, they will make it crash until 2013 then ramp it up again in time for May 2015. However, real growth in housing is dead for 20-30 years.

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I don't know. Will Labour have recovered in time for the economy to pick it up again?

I don't think that there's anything wrong with Labour except their leader.

If they can still get 30% of the people to vote for them having ****ed up the country completely they don't need to do much to gain the percentage points to win power next time.

tim

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I think you need to get your facts straight.

See link; this clearly shows that the budget was under control by Labour up until 2007. In fact the deficit was about the same as under the Tories at 35%. The Tories were mostly in the red last time around.

I was the banks wot done it!! Until people acknowledge this then we're likely to go down the wrong road - ie drastic cuts as DC is planning now.

http://www.guardian.co.uk/news/datablog/2010/apr/22/uk-deficit-government-borrowing

Very good graph - worth a look.

That’s what Labour supporters want to believe. It’s a load of deluded codswallop though.

If it weren’t for the triangle of banks willing to lend stupidly, greedy members of the public willing to take on debts they had no chance of ever paying back and a government happy to reap the resulting tax take so they could buy electoral advantage with it we would not be in the mess we are now. They are all responsible but, in the end, Brown and his government have to bear the majority of the blame - they were, after all, running the Country at the time. They were elected to manage the economy sensibly and, not only did they fail spectacularly, they carried on making things worse for years after September 2007 when it was abundantly clear to anyone with a shred of common sense that the game was up, purely to give themselves a chance of winning the next election.

Oh, and as for our investment in the banks we “own” coming good some day. There’s only one way that will happen, that’s if they successfully rip off their customers, i.e. us, for long enough to get their balance sheets in order. That will be a victory for them and their bonuses but not for us. We paid for their survival and we’ll foot the bill for their recovery one way or another as well.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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