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Our Policymakers Have No Plan For Growth

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http://www.guardian.co.uk/business/2011/jul/10/recession-uk-us-economy

Figures revealing that Britain's depression will last longer than the slump of the 1930s should shock us all. In the circumstances it is reasonable to ask how the government can still be sitting on its hands.

When the National Institute of Economic and Social Research says we cannot, on our current trajectory, get back to 2008 levels of output until 2013, meaning the depression will be the longest of the past 100 years, it is surprising we hear nothing from the chancellor.

Employment data this week is expected to show the situation is dire for anyone without a job. Employers are biding their time, waiting for signs of an upturn before taking on full-time employees. A look at the Office for National Statistics data shows the vast majority of jobs created since the economy began its slow and stuttering climb back to normality are part-time.

Wage rises are low, except in a few industries where the price of labour is unrelated to the cost of production (such as investment banking) or workers are playing catch-up after years of freezes (manufacturing is an example). Business investment is up a paltry 2.7% year on year. More importantly, a recovery during 2010 came to a juddering halt in January with a fall of 3.2% in the first quarter from the fourth quarter of 2010.

If 2008 was the peak of a bubble, I think hoping we'll have recovered back to that by 2013 is being very optimistic.

Before we can have growth we have to purge all the bad decisions, which will require a painful readjustment in the economy, there is no way to avoid this. The more money we print to avoid the adjustment means that the the final adjustment will be even greater.

However that is the path we'll take.

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They have no industrial policy, no energy policy, in fact they have no leadership skills at all.

All they do is react to events by making new laws to suppress whatever comes up. They are not proactive, simply reactive. What we need is leaders that make things happen.

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Its interesting, I've been reading about the primary election race in the USA for the republican party. And something that is coming up is the over-regulation of the economy. Business wants to invest and move forward, but not if its facing a mountain of regulations and roadblocks by the government.

The government should be helping encourage investment in real industry.. not using everything it can think of to stop every project.

What makes the debate interesting is 5 years ago debate in politics was about tax policy mainly. Like lower taxes were better for growth argument. But little was talked about the over-regulation.

Back in Britain the coalition has talked about making it easier to build new homes. Considering how much of the economy and good jobs are in construction, that could really boost the economy. But sadly the coalition seems to move at a glacial pace. Like Labour before them, the coalition seems to forget that they are the party in power. If you want more homes built, simply change the laws.. like tomorrow, or at least this week. Not wait years, because at this rate the economy isn't even going to hold up for years. See Portugal, Greece and Ireland.

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They have no industrial policy, no energy policy, in fact they have no leadership skills at all.

All they do is react to events by making new laws to suppress whatever comes up. They are not proactive, simply reactive. What we need is leaders that make things happen.

I feel the same way watching them. Like they will come up with some general policy goal. Then it will go to unofficially in their platform. Then they will be working on a proposal. Years are passing here, and the unemployed are still unemployed.

These type of leaders who don't rock the boat, are great when times are good. You just want someone who doesn't screw things up. But when times are tough, you need someone who can lead and take action.. especially when he faces great resistance. Like when the entrenched special interests squeel.

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Its interesting, I've been reading about the primary election race in the USA for the republican party. And something that is coming up is the over-regulation of the economy. Business wants to invest and move forward, but not if its facing a mountain of regulations and roadblocks by the government.

The government should be helping encourage investment in real industry.. not using everything it can think of to stop every project.

What makes the debate interesting is 5 years ago debate in politics was about tax policy mainly. Like lower taxes were better for growth argument. But little was talked about the over-regulation.

Back in Britain the coalition has talked about making it easier to build new homes. Considering how much of the economy and good jobs are in construction, that could really boost the economy. But sadly the coalition seems to move at a glacial pace. Like Labour before them, the coalition seems to forget that they are the party in power. If you want more homes built, simply change the laws.. like tomorrow, or at least this week. Not wait years, because at this rate the economy isn't even going to hold up for years. See Portugal, Greece and Ireland.

What passes for regulation more often than not is a thinly disguised route for further taxation.

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One thing we should have is five year plans. In Asiatic countries which have moved away from Communism, they are still sticking with 5 year plans. You have to define what it is you want to achieve, before you can even think of a plan on how to achieve that.

So say they say as a broad economic goal they want the economy in 2016 to be 15% larger in real terms. Ok how do we boost our economy by 15% over the period.

Say it is determined we want an expansion in construction of 20% over the 5 year period. Ok how do we achieve that.

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They have no industrial policy, no energy policy, in fact they have no leadership skills at all.

All they do is react to events by making new laws to suppress whatever comes up. They are not proactive, simply reactive. What we need is leaders that make things happen.

+1

Unfortunately they cannot see past the trough they are feeding from.

The UK cannot recovery until we have had a proper crash and the system is purged of all the crap. Since 2007 what has changed? What has been fixed? Absolutely nothing. To be honest I'm not 100% convinced we would be in any worse shape if Brown was still in power.

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Why do we need growth ?

As far as I can see the only reason for it is to line the pockets of the few individuals at the top of the tree.

I'd prefer less people in the country, cheaper prices, better quality of service, fewer people on the roads...wouldn't everyone...apart from the few individuals t the top of the tree ?

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I agree. I vote for managed decline.

Wooohooo....new concept...better life for everyone apart from them creaming off the profit from ever increasing numbers of sheep.

Cheaper house prices would follow too. better quality of life.

I think a target number of people of around 35 million would be a good target.

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Why do we need growth ?

To attract investment so we can borrow more and continue our Ponzi economy? The growth goes straight towards paying down the interest on the debt but the debt pile never gets any smaller. Not enough growth and the debt pile gets bigger.

Maybe I view this too simplistically though? Hard to say, when an individual borrows money they eventually pay off the principle after paying off all the interest, the Govt. on the other hand just keep re-financing - a never ending interest only debt pile.

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Wooohooo....new concept...better life for everyone apart from them creaming off the profit from ever increasing numbers of sheep.

Cheaper house prices would follow too. better quality of life.

I think a target number of people of around 35 million would be a good target.

Not a new idea according to Hitler.

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+1

Unfortunately they cannot see past the trough they are feeding from.

The UK cannot recovery until we have had a proper crash and the system is purged of all the crap. Since 2007 what has changed? What has been fixed? Absolutely nothing. To be honest I'm not 100% convinced we would be in any worse shape if Brown was still in power.

I think we'd be heading for towards total collapse even faster. We'd be employing even more public sector workers to boost the economy.

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Why do we need growth ?

As far as I can see the only reason for it is to line the pockets of the few individuals at the top of the tree.

I'd prefer less people in the country, cheaper prices, better quality of service, fewer people on the roads...wouldn't everyone...apart from the few individuals t the top of the tree ?

Fewer people on the roads you say? You can do that by simply not using the roads as much, and do us all a favour.

Or do you mean you want others not to use the road?

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I agree. I vote for managed decline.

Id go for that....only in the public spending arena though.

Every £1 not spent in the public arena though, is £1 OFF GDP.....and as they all bow to the god GDP, then they fear the press will bite them...maybe an explanation of GDP to the media and the masses over month would help.

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Its interesting, I've been reading about the primary election race in the USA for the republican party. And something that is coming up is the over-regulation of the economy. Business wants to invest and move forward, but not if its facing a mountain of regulations and roadblocks by the government.

The government should be helping encourage investment in real industry.. not using everything it can think of to stop every project.

What makes the debate interesting is 5 years ago debate in politics was about tax policy mainly. Like lower taxes were better for growth argument. But little was talked about the over-regulation.

Back in Britain the coalition has talked about making it easier to build new homes. Considering how much of the economy and good jobs are in construction, that could really boost the economy. But sadly the coalition seems to move at a glacial pace. Like Labour before them, the coalition seems to forget that they are the party in power. If you want more homes built, simply change the laws.. like tomorrow, or at least this week. Not wait years, because at this rate the economy isn't even going to hold up for years. See Portugal, Greece and Ireland.

Well put.

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The best plan from policymakers to promote growth is to have no plan at all apart from being mandated to reduce 5% of the remaining compliance burden faced by businesses annually.

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Maybe I view this too simplistically though? Hard to say, when an individual borrows money they eventually pay off the principle after paying off all the interest, the Govt. on the other hand just keep re-financing - a never ending interest only debt pile.

I think this is to simplistic as you are paying off your debt your kids are taking on new debt.

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Id go for that....only in the public spending arena though.

Every £1 not spent in the public arena though, is £1 OFF GDP.....and as they all bow to the god GDP, then they fear the press will bite them...maybe an explanation of GDP to the media and the masses over month would help.

GDP should be an irrelevence. Surely it's per person that really matters.

Fewer people on the roads you say? You can do that by simply not using the roads as much, and do us all a favour.

Or do you mean you want others not to use the road?

Or with fewer people around the roads won't be as busy - just one of the reasons why a population decline would be a good thing.

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They have no industrial policy, no energy policy, in fact they have no leadership skills at all.

All they do is react to events by making new laws to suppress whatever comes up. They are not proactive, simply reactive. What we need is leaders that make things happen.

They are not leaders, a reaction follows a cause for them to lead they must be the cause and allow evets to follow the path they set out. Although I hated her at the time there hasn't been a leader in this country since Margaret Thatcher.

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There are two types of growth...debt based growth and productivity based growth.....only one works, it only works if there are the right and sufficient people who can gain from it by being able to afford to buy it. ;)

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Its interesting, I've been reading about the primary election race in the USA for the republican party. And something that is coming up is the over-regulation of the economy. Business wants to invest and move forward, but not if its facing a mountain of regulations and roadblocks by the government.

If I have one rule about American politics it is simply to ignore Republicans.

They had the Presidency for 8 years in which national debt exploded, the deficit went astronomically large, the property market boomed and then collapsed and the banks almost went under. They gave unfunded tax cuts to the richest 1% and started 2 unwinnable and unfunded wars for the military industrial complex.

In opposition they claim to be the party of mom and pop businesses and small government. It is laughable.

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If I have one rule about American politics it is simply to ignore Republicans.

They had the Presidency for 8 years in which national debt exploded, the deficit went astronomically large, the property market boomed and then collapsed and the banks almost went under. They gave unfunded tax cuts to the richest 1% and started 2 unwinnable and unfunded wars for the military industrial complex.

In opposition they claim to be the party of mom and pop businesses and small government. It is laughable.

I think that US governments tend to work best when there are no monopoly powers.

A Democratic executive branch and a Republican legislative branch (or vice versa) seems to work much better than when both branches of government are in the control of the same party.

The best government is one which is able to do as little as possible.

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If I have one rule about American politics it is simply to ignore Republicans.

They had the Presidency for 8 years in which national debt exploded, the deficit went astronomically large, the property market boomed and then collapsed and the banks almost went under. They gave unfunded tax cuts to the richest 1% and started 2 unwinnable and unfunded wars for the military industrial complex.

In opposition they claim to be the party of mom and pop businesses and small government. It is laughable.

Sounds much like Labour over here.

Edit: apart from the last bit, of course. Labour just want even more of the same.

Edited by Traktion

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  • 312 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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