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Mikhail Liebenstein

The Coalition Is Actually Increasing Spending

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http://www.telegraph.co.uk/finance/comment/jeffrandall/8007556/The-Coalition-is-spending-even-more-than-tax-and-waste-Labour.html

A fascinating article that reveals the coalition will not actually save a single penny and the Government spending will just keep on rising.  Yes some of this is down to increased interest debt, but read this:

Lots of tricky numbers, I know, but stick with me, because this is a horror story worthy of a Victorian "penny dreadful".

Let's compare £652 billion in 2010 money with £493 billion in 2005 money. That is, adjust the former for five years of inflation. Which is bigger?

According to my friends in the economics team at Deutsche Bank, £652 billion today would have been worth about £561 billion in 2005.

You get the drift. The Coalition is spending more in real terms than Mr Brown, the darling of Labour's tax-and-waste brigade, did in an election year.

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Bit misleading; even I acknowledge that the thing is an oil tanker and turns slowly.

That's why they are saying it'll be so much off each year, leading (they hope) to the target in 4 or 5.

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I don't agree with your sub title Mike.

The answer, in part, is debt. Not your personal debt, but our collective debt. It's often referred to as "the government's debt", but that's not correct. The government doesn't have any debt, because the government doesn't have any money. It does, however, administer taxpayers' funds – and these are running blood red.

On our behalf, the Blair-Brown borrowing machine ran riot with the credit card, clocking up obscene interest charges which will continue to rise even as the Coalition battles to reduce the annual deficit. This means that money which could have supported government departments is being gobbled up by Britain's creditors.

Worse still, there is the false notion that Mr Osborne's robust measures to narrow the gap between what we earn and what we spend will result in our total debt going down; they definitely will not.

There will be plenty of cuts, as the country scrabbles around tring to service the huge debt we are in.

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Bit misleading; even I acknowledge that the thing is an oil tanker and turns slowly.

That's why they are saying it'll be so much off each year, leading (they hope) to the target in 4 or 5.

Exactly. The plan is for a reduction of government spending (in real terms) of around 6% / year, starting in the next tax year, from April 2011, totalling 25% from April 2014. (If inflation remains around 3%/year, then the cuts, in nominal terms, should be around 3%/year.)

That is the plan anyway. It remains to be seen if the government will have political support to do that. They will have the opposition of the Labour party, the unions, and (probably worst of all) from the BBC.

EDIT: I think the numbers above may be related to "discretionary spending" = departments. Not sure if they include welfare and interest rates.

but while the annual deficit is coming down – from £149 billion to £37 billion – total interest charges on accumulated debt will rise over the next five years from £44 billion to £63 billion.

Edited by Tired of Waiting

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Service part of the debt by increasing the efficiency tax collection. I know it's a clarion call of the unions right now but it kind of makes sense. Doesn't it? I mean the LibsCons bang on about waste so why not make the one department that can really help pull us out the poo poo into a beacon of efficiency. Come on coalition show us what an un-wasteful department should look like, starting with HMRC.

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Service part of the debt by increasing the efficiency tax collection. I know it's a clarion call of the unions right now but it kind of makes sense. Doesn't it? I mean the LibsCons bang on about waste so why not make the one department that can really help pull us out the poo poo into a beacon of efficiency. Come on coalition show us what an un-wasteful department should look like, starting with HMRC.

It would be interesting to see how much of that uncollected money is from individuals and not from companies gone broke.

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I don't think enough fuss has been made, by left wingers and right wingers, about the ludicrous Tory policy of ring-fencing NHS expenditure. It makes no sense to me whatsoever. Other public services will fall apart, whilst GPs and NHS managers are living it large on whores and coke. Why don't the left attack this more?

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I don't think enough fuss has been made, by left wingers and right wingers, about the ludicrous Tory policy of ring-fencing NHS expenditure. It makes no sense to me whatsoever. Other public services will fall apart, whilst GPs and NHS managers are living it large on whores and coke. Why don't the left attack this more?

It makes complete sense because large quantities of that ringfenced money is going to be handed to the private sector. It was a great policy headline but what they didn't tell us they were going to use some of it to privatise primary care. As always the devil is in the detail and the detail in this case puts quite a different complexion on the matter.

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http://www.telegraph.co.uk/finance/comment/jeffrandall/8007556/The-Coalition-is-spending-even-more-than-tax-and-waste-Labour.html

A fascinating article that reveals the coalition will not actually save a single penny and the Government spending will just keep on rising. Yes some of this is down to increased interest debt, but read this:

doesnt that just say in 2010 we will spend more in 2005? If we are cutting spending I would think the relevant comparison is if it is less than 2009, is 2011 less than 2008, is 2012 less than 2007 etc.

Edited by Saver

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they want to cut THE DEFICIT.

the deficit is the INCREASE IN BORROWING.

the debt is getting worse every second there is a DEFICIT.

Its about time they cut public sector salaries by 50% over 25K.

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Bit misleading; even I acknowledge that the thing is an oil tanker and turns slowly.

That's why they are saying it'll be so much off each year, leading (they hope) to the target in 4 or 5.

This is a bit of a cop out. As Iain duncan Smith said they can pretty do anything they want, so if they're allowing the national debt to climb it's because their priorities lay elsewhere. They could cut the deficit to £0 in a year if they wanted to, it's well within their capabilites.

There's so much wrong with this country that it should be easy to make a lot of headway very quickly, it's only when you're running efficiently that savings become tricky to find.

Edited by Chef

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The "Demographic Time Bomb" has gone off. Simple as that. More old people sponging off the welfare, fewer workers paying in. Old farts draining the NHS too. Not like anyone didn't see it coming its been dyed in the wool for 40 years or more. Every government since Churchill has ignored it. The UK faces five years of hardship and cuts and at the end of that period will be twice as deep in debt as it is now even if the nuga-Tory government hits its target (it will be a very unusual government if it does).

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I don't think enough fuss has been made, by left wingers and right wingers, about the ludicrous Tory policy of ring-fencing NHS expenditure. It makes no sense to me whatsoever. Other public services will fall apart, whilst GPs and NHS managers are living it large on whores and coke. Why don't the left attack this more?

I tend to agree, but can you imagine the outcry? Cameron is trying to navigate through a narrow channel here.

That said I don't agree with the policy. Bottom line, we need to reach a point where the deficit stops existing, the point where what the nation spends on itself is matched by what it creates. Simple enough concept, seems to have got past a lot of people.

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Bit misleading; even I acknowledge that the thing is an oil tanker and turns slowly.

That's why they are saying it'll be so much off each year, leading (they hope) to the target in 4 or 5.

Not going to happen.

States advances until full blown economic collapse.

They have no plan, there is no way out. They are lying, distracting and hoping. It won't work, and once the public sector lot stop getting paid, neither will they. This is a problem because like all good parasites, they have taken over all the hosts vital organs. They do everything important (badly) when they stop it will be a nightmare until something else can be started up.

Edited by Injin

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I tend to agree, but can you imagine the outcry? Cameron is trying to navigate through a narrow channel here.

That said I don't agree with the policy. Bottom line, we need to reach a point where the deficit stops existing, the point where what the nation spends on itself is matched by what it creates. Simple enough concept, seems to have got past a lot of people.

Theres no channel.

Cameron is there to get a section of society* to sit still whle he and his backers get soem last minute looting done. They are still can kicking!

*Which apparaently includes yourself, Bogbrush.

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The "Demographic Time Bomb" has gone off. Simple as that. More old people sponging off the welfare, fewer workers paying in. Old farts draining the NHS too. Not like anyone didn't see it coming its been dyed in the wool for 40 years or more. Every government since Churchill has ignored it. The UK faces five years of hardship and cuts and at the end of that period will be twice as deep in debt as it is now even if the nuga-Tory government hits its target (it will be a very unusual government if it does).

There's a more immediate economic problem, there are too many V.Is willing us towards bankruptcy because they don't want to do an honest days work.

Parasitism only works when there are a large number of hosts to feed off, the Labour government didn't understand this basic principle and also made the error of thinking that parasitism = wealth creation because the activity turns up int the GDP stats. So instead of just allowing a few major landowners to usurp the nation's rents the majority have been encouraged to get in on the act: public sector workers, property spivs, accountants, benefits claimaints, 'private' companies suckling off the public teat and so on, the list is endless.

This is the main problem imo, the country is hooked on stolen money and is unable to grasp the concept of only being paid when real services are added.

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Not going to happen.

States advances until full blown economic collapse.

They have no plan, there is no way out. They are lying, distracting and hoping. It won't work, and once the public sector lot stop getting paid, neither will they. This is a problem because like all good parasites, they have taken over all the hosts vital organs. They do everything important (badly) when they stop it will be a nightmare until something else can be started up.

Its true...we need an Iron lady in charge...never had one before though, it will be a first.

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Theres no channel.

Cameron is there to get a section of society* to sit still whle he and his backers get soem last minute looting done. They are still can kicking!

*Which apparaently includes yourself, Bogbrush.

Oh I know where I sit in the order of things all right!

I take a slightly more benign view of intentions, whether or not the results will be useful to most of us is a different matter. Personally, I am working on the basis things will be stable whilst preparing a few back door escape routes, at least from GB.

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Its true...we need an Iron lady in charge...never had one before though, it will be a first.

The dictator guy always arrives post collapse.

They don't come early and save everyone, the political capital of the current regime has to be fully expended first. Then after he's killed zillions with his arrogant uselessness it's back to a republic style of thing for a few generations until everyone forgets why the state/banking system is to be kept firmly in it's box and it's off we go again.

Edited by Injin

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The "Demographic Time Bomb" has gone off. Simple as that. More old people sponging off the welfare, fewer workers paying in. Old farts draining the NHS too. Not like anyone didn't see it coming its been dyed in the wool for 40 years or more. Every government since Churchill has ignored it. The UK faces five years of hardship and cuts and at the end of that period will be twice as deep in debt as it is now even if the nuga-Tory government hits its target (it will be a very unusual government if it does).

It's not the old people really, it's the because we're worth it mentality.

Without that old people would be living with their families in many cases. But their kids deserve a better life than that, don't they. Don't they?

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It's not the old people really, it's the because we're worth it mentality.

Without that old people would be living with their families in many cases. But their kids deserve a better life than that, don't they. Don't they?

The because we're worth it mentality is a psychological reflection of how humilated most people feel by their lives.

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  • 152 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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