Monday, October 25, 2010

More deficit hysteria antidote

Countering the cuts myths

Facts, figures and historical perspective on the current UK government debt situation do not support there is a danger of the UK defaulting. The perception of a crisis is being hammed up and used to justify the shrinking of the state for ideological reasons.

Posted by nickb @ 04:37 PM (1739 views)
Please complete the required fields.



24 thoughts on “More deficit hysteria antidote

  • cynicalsoothsayer says:

    Idealogical claptrap, supported by cherry picked statistics, arguing Liebour didn’t try hard enough to get into the difficulties of Greece and Ireland.

    Reply
    Please complete the required fields.



  • probably written by the same person who signed the petition against punishment in schools.

    the thicko do gooders who cause more issues with their do gooder support everyone rubbish

    Nickb why dont you go to Norway or similar and see how good it really is to live there, this is a golden opportunity for you as they sound so wonderful

    Reply
    Please complete the required fields.



  • Cynic,
    So where are the mistakes exactly? Must be easy for you to point them out. (But consider that Greece and Ireland are not sovereign issuers of their own currency, unlike the UK.)
    Mark,
    Can’t you do better than that? With all the brains at your disposal (unlike ‘thickos’ who actually present something resemling a reasoned argument)?
    N

    Reply
    Please complete the required fields.



  • Yeah Mark, whos the thicky thicko eh

    Reply
    Please complete the required fields.



  • Thanks for posting nickb. Makes a change to see something thoughtful, balanced and well-researched.

    The deflation death spiral/liquidity trap is inevitable if the spending cuts go through. I say if, because I hope they may change their minds when the spit hits the fan.

    Why do people argue the case for inflation on this site?? It’s like visiting an atheist site and finding lots of warnings about the impending second coming!

    Reply
    Please complete the required fields.



  • Cuts to government spending are clearly needed. http://www.labourlist.org/government-spending-cuts-are-needed-being-exploited-warwick
    Labour agree. Why? Because almost all those myths outlined in the original post are not myths at all. Is the need for cuts being exploited? Possibly, although I find it hard to see how large cuts to the armed forces fit in with traditional Conservative ideals.

    Reply
    Please complete the required fields.



  • Norway a nation of ONLY 4% unemployment and a surplus of about $250,000 for every person in the country. Yeah, it sounds like a real hell hole.

    Reply
    Please complete the required fields.



  • The mistake Brown made between 2002-2007 was to look at the level of national debt and nothing else (it was lower in 2007 than when labour came to power in 1997), such as land values, personal debt levels, etc. So what are the toreis doing now? They’re looking at the debt and nothing else. Same idiotic approach.

    Reply
    Please complete the required fields.



  • the number cruncher says:

    I remember buying the first ever issue of red pepper back in about 94 or 95 – glad to see it still going.

    Nothing wrong with any of the figures, they might be cherry picked, but no worse than the ideological bias of most of the press.

    I would say its economic arguments are naive, but remember this is a young adult publication and most of its readers have a lot of life learning.

    I am all for stopping paying for the murdering of innocent Iraqi and Afghani children, taxing the idol wealthy, stopping tax evasion and loopholes to save the jobs of hard working public servants doing a great job and contributing to our national economy.

    Reply
    Please complete the required fields.



  • the number cruncher says:

    mark – I will go to Norway, if you go to Albania to live (I do a bit of business in Norway and think the country is great)

    Reply
    Please complete the required fields.



  • Fairly good article. The treatment of the banks’ role in the crisis should have had far greater prominence though.

    Reply
    Please complete the required fields.



  • cynicalsoothsayer says:

    Supposition is used as straw men to attack in following paragraphs, in places ‘may’ is turned into ‘will’, so many instances of ‘could’. Comparison periods are carefully chosen: “In fact, levels of public spending as a proportion of GDP were much lower for most of the 2000s than they were than at any point since the 1960s.” How about before then?

    “Countries such as Greece, Ireland and Portugal have average debt maturity rates of between six to eight years, but UK government debt stands out among international comparisons as being much longer term at well over 12 years on average.”
    – Comparison against basket cases to try make labours decisions look good.

    “For example, the UK spent just 8.4 per cent of its GDP on health in 2007, roughly half that spent in the United States (once the large private sector is taken into account) and well behind Germany, France and most other west European nations.”
    – Comparison against very high spenders, possibly unsustainable spenders, instead of broad comparisons.

    “What the data shows, therefore, is not that public sector workers are overpaid, but that some private sector workers are severely underpaid.”
    Goes to show how divorced from economic reality the writer is.

    Reply
    Please complete the required fields.



  • builditandtheywillcome says:

    Seriously,what complete rubbish.Is this a 6th form magazine or something?Grow up and find some maturity.Ideological reasons?Lets disect that comment shall we.If the current government is shrinking the size of the state purely for ideological reasons,then would it not be fair to say that the previous government expanded the size of the state for their own ideological reasons?Or would that be an inconvenient truth for those lined up to the left?Face up to reality,another labour government has completely screwed all of us.Now take it on your shoulders and jog on.

    Reply
    Please complete the required fields.



  • Albania is looking better all the time

    however we do at lot of business in the UK and USA, the worse the downturn the better for us..

    Reply
    Please complete the required fields.



  • How about Dalian in China the locals like to get you oiled up

    Reply
    Please complete the required fields.



  • The economics of the madhouse a la Red Pepper.

    Reply
    Please complete the required fields.



  • lol nickb any views

    Reply
    Please complete the required fields.



  • Marxoid baloney. Just take a look at the Taxpayers’ Alliance site to see how serious things really are.

    But that said, I am rather attracted by the idea of following Red Pepper-approved socialist policies.

    Why? Because it would speed up the end of the welfare warfare state through complete economic collapse, just as the Soviet Union fell apart under the weight of its own contradictions.

    Reply
    Please complete the required fields.



  • If debts don’t matter, then why do we pay tax at all?

    Reply
    Please complete the required fields.



  • Oh god. I have been here long enough to remember when this site was full of intelligent debate. Sad to see it going the way of the Daily Mail comments board.

    Reply
    Please complete the required fields.



  • Pretty pathetic criticisms… only cynic raises any specific points. Well, tries to…PIGS are chosen as comparators because that (according to the deficit hysterics) is where we are heading. Similar rebuffs apply to the time comparisons too.
    You shouldn’t judge an article by where it appears but by what the author says. i’d even apply that, reluctantly, to the daily mail too, btw.
    Nick

    Reply
    Please complete the required fields.



  • Mark,
    The taxpayers’ alliance is a propaganda engine funded entirely by right wing lunatics. It is not a grassroots organisation, though it pretends otherwise. Have a look at their advisory board etc.
    N

    Reply
    Please complete the required fields.



  • “The perception of a crisis is being hammed up and used to justify the shrinking of the state for ideological reasons.”

    Good!

    Reply
    Please complete the required fields.



Add a comment

  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user´s views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>