Wednesday, October 20, 2010

Deficit Hysteria Antidote

Osborne will escape public wrath if Labour lets him win the blame game

Argues that the deficit is being massively hyped to usher in spending cuts, gives figures that back this up, and that we are falling for it. This goes some way to explaining the muted reactions over here to austerity measures compared to those of our cousins across the channel.

Posted by nickb @ 11:41 AM (2672 views)
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17 thoughts on “Deficit Hysteria Antidote

  • It is not rocket science

    Labour inherited a great economy and simply f&cked it up

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  • deeply flawed article

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  • Master of the one-liner? Nope

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  • carry on spending – then Nickb?

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  • Beer please, make it a pint

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  • the number cruncher says:

    Labour & Tories both screw up the economy for short term benefit of their most powerful lobbyists and it is impossible to define one party as bad and another as good. If you do you are being very narrow minded

    But the Tories will be unfairly blamed for the economic downturn over the next 5 years, as labour have been unfairly blamed by the structural problems put in place by the previous Tory administration. The economy is a complex beast and both the Tories and Labour are culpable in the poor decisions they make.

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  • @ number cruncher – good job the Lib Dem’s are in on the act this time around to get it right ! (LOL)

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  • mark wadsworth says:

    Well yeah but no but.

    Fact; Brown & Blair were both rabidly Home-Owner-Ist who joined in merrily with the “larcenous greed of the bankers” and didn’t appear to notice that house prices had doubled or trebled in a very short space of time.

    Fact; Spending had been increasing merrily since long before the bubble popped in 2007-08.

    Fact: most of the money thrown as banks is not accounted for as spending, neither capital nor current, it is accounted for as loans or as contingent loans and so not accounted for at all.

    Fact; tax revenues fell about 6% because of the recession, roughly the same as the amount by whic GDP shrank (rather unsurprisingly), which is about £30 billion or something, and welfare payments went up by maybe £10 billion because of the recession. So deficits of up to £40 billion per annum can be excused as general “fiscal stabilisers” and there’s no harm in that.

    Fact: there are at least 8 million taxpayer funded jobs nowadays, two million more than in 1998

    Fact; Public sector salaries isn’t the biggest item of public spending – the biggest item is spending on ‘private’ procurement which is over twenty per cent of GDP, or “massive wholesale corruption” as you might call it. And while the Tories might make a few token cuts to public sector, you can bet your bottom dollar they won’t cut payments to their mates in the private sector.

    Fact: both Labour & Tories are as bad as each other, they both plan to spend £700 billion a year, which if you knock of “core functions of state” and debt intersest is £10,000 per man woman and child per year. This is madness. I can see that maybe a pensioner gets his money’s worth in state pension and ‘free’ healthcare, but apart from that, I’d prefer to take the £40,000 for my family and spend it myself, thanks very much.

    And so on.

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  • well, re the comments that are against the author…
    you don’t actually attempt to discuss the specific figures in the article.
    N

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  • specific figures in the article.

    Damn statistics.

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  • @HP
    So where exactly are the lies?
    N

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  • just been watching the cuts live, what cuts? it was pretty pathetic, next stop moodys or fitch they really need to downgrade us now, as I cant see public spending reduced with those measly cuts

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  • With speeches like this, the giveaways get plenty of detail, while the real cuts only get a quick mention.

    Our George quietly slipped in something about housing benefit eligibility rising from 25 to 35 – he said it rather quickly and quietly, which drew my attention..

    – I’m not an expert on the detailed mechanics of HB, on how eligibility is calculated –

    ..is this mega by any chance??

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  • mark
    downgrade us, why? there isn’t a debt crisis.

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  • general congreve says:

    Osbourne has delivered no discernible cuts in the overall scheme of things, even with a bit of inflation thrown in over the next few years to water down the real level of the deficit it’s not going to have a huge impact. GOOD LAD!

    Forward to currency crisis and sovereign debt default, Tally Ho!!!

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  • Let him?

    Who spent all the f*cking money?!?!!?

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  • Apparently these ‘cuts’ could cost serious money if longer serving civil servants are made redundant, with secret fat exit pay packages and pensions! This disgraceful excess obviously still hasn’t been clamped down on, despite noises stating it would be, by the current cowardly government!

    It would seem that the Green report was just another smoke screen or diversion for business (waste) as usual!

    As suggested (15. GC), default still looms!

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