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When half of the country is addicted to Mcdonalds and KFC what do you expect?
ALIt's very simple what it means. Being against Austerity is not about giving money away to scroungers. It's about making us all richer. Supporting Austerity makes all of us poorer. Here's why. It's very simple, but also one of the most powerful principles of economics.It's about the amount that the Government spends to buoy up a struggling economy. When the economy is struggling, there's not enough demand for the goods that business could make. People and companies are worried about their debt and their future prospects. So they reduce their spending. But reducing spending also means reducing buying. Which means even less business is done. So companies make lower profits and give lower wage rises, or lay staff off, or don't employ new staff. And it's a vicious circle.The way out of that vicious circle was discovered by the British economist John Maynard Keynes in the 1920s. He said the trick is that, to fill the gap between what business COULD deliver and what a the depressed economy is prepared to spend, GOVERNMENT must increase its spending, effectively buying stuff from the public sector. This pumps money back into the economy and gives companies more confidence that they can sell their products. So they make more. And they sell them. And they make profits. So they can take on more staff, or pay higher wages. And those staff, on higher wages, go out and buy other stuff. Which supports other businesses. And the economy takes off again. After which, the Govt can stop spending so much, and pay off the debt it has incurred through the taxes it gets from the active economy.It is a beautifully simple and blindingly obvious economic principle. And it works. It's the reason we've never had another Great Depression (we used to have them regularly before Governments learned about Keynes). And then the Tories were elected in 2010, and they chucked all of that out of the window. They said that the real problem was Govt debt. And that Government spending had to be reduced. Even though the economy was on its knees still after the Great Financial Crash.So they cut back spending all over the place. They cut back on flood defences. They cut back on school building and on teacher numbers. They cut the increases in funding that went to the NHS. They cut back Govt spending on Universities and made students take on debt to cover the costs. They cancelled several plans to electrify railway lines. They put no money into the fibre optic network. And yes, they also cut back benefits. Which was a spectacularly stupid thing to do, because the one group of people who spend pretty much every penny they get are those on benefits, because they only have enough to scrape by - and getting people spending is PRECISELY what you need to do to get the economy moving.And the result? We've now had a decade of the economy growing between 0-1.5% per year. Prior to that, from the end of the War to 2010, the average rate of growth was 2.3% per year. You don't notice that difference over one year. But over ten years, it's massive. It tots up to about £1trillion in lost economic activity over a decade.And THAT is why we've just had the worst decade for pay increases since the end of the Napoleonic War. It's why the NHS is creaking. It's why so many places are vulnerable to floods. It's why travelling on roads and railways is such a horrific experience. And it's why life expectancy is going down. Because these utter, soulless, callous bas**rds chucked out the most important rule of Economics. THAT is why I f**king well bang on about Austerity.
Weil it makes a change from Syd and friends hope that all the old ones would snuff it before another (cough) referendum you hoppo's were wanting, it looks like a few of the young uns couldn't stand the pace. Get snorting, everything will look better in the morning, the younger the better.
AL.Now you get onto the second point.You can't efficiently cut Government debt by cutting Government spending when the economy is struggling. That sounds illogical but it's actually very simple. Here's why.Government debt comes about because of two things: Government spending is one, the other is the money Government gets back, mainly through taxes.Look at the earlier argument. If you cut Govt spending when the economy is struggling, the economy stays struggling. So there's less economic activity. So there's less tax paid to the Govt.Back in 2010 when Austerity started, the Govt was spending a lot more than it got in taxes. That is to say, we had a high deficit and therefore the debt was increasing. That was because tax receipts had collapsed because the Global Financial Crash had been so severe. The Tories said that if they cut Govt spending, this wouldn't harm the economic recovery and the deficit would be reduced to zero by 2015. After that, the debt would start to come down.In fact, the economic recovery from the GFC stopped. Tax income stalled. And we still had a big deficit in 2015. We still haven't eliminated the deficit yet. In fact the Govt now says it will be the late 2020s before it is eliminated. That was all predictable and predicted in 2010 by economists who understood Keynes. The fact that the Govt didn't understand basic economics, taught to 1st university economics students is the biggest UK economic disaster since the War. We've had a year of lost economic opportunity AND we've still got an increasing deficit.Keynes's approach is simple. You get the economy booming through Govt spending. THEN you cut back spending, when private business has got it's mojo back. He said "The time to cut the debt is during the boom, not the bust." Simple. Obvious. Totally ignored by this incompetent bas**rds. To all our costs.
Pushing drugs up their noses, eating ready made food, smashing themselves up in road accidents, binge drinking, having a stabbing contest at the weekend, all seem to be the new pastimes of the young, and will soon bring the age groups down.