Quote:
Originally Posted by dazzer89
Sweden. High taxes. High public spending, allowing tax cuts to fight recession. No austerity shocks. Lots of jobs around.
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Really.
http://www.indexmundi.com/sweden/unemployment_rate.html
Not immune despite not having much of a financial services sector, and it should be noted Sweden have been rolling back the size of their state.
Also noteworthy is that Sweden have been paying down their deficit for quite some time and are very happy about it. How odd given that running deficits is apparently business as usual.
Australia also did much the same thing, a huge austerity package relative to ours, however they actually paid off their public sector debt, in full, and had funds in the bank to throw at it.
We entered in a totally different situation, even without stimulus spending the structural deficit was unsustainable.
Quote:
Originally Posted by dazzer89
Public spending, like it or not, is the key to a smoothly running, shock resistant economy. Also, Germany. Increased spending, came out of recession before anyone else.
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Agreed on the first point, that's common sense, however it's about how much of it you do.
Interestingly Germany is already engaged in austerity measures.
http://dealbook.nytimes.com/2010/06/...erity-package/
Quote:
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"The German state budget was balanced in 2008 before the crisis began and the deficit came only then," Horn told Deutsche Welle.
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Are we seeing a pattern here? Again the budget was balanced pre-crisis, not already running deficits.
They seem to be doing ok despite the impending austerity bite.
http://online.wsj.com/article/BT-CO-...12-705004.html
Quote:
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WIESBADEN (Dow Jones)--Germany's economy in 2010 grew at its strongest rate since the country's reunification, propelled by buoyant exports and rising investment, the Federal Statistics Office said Wednesday.
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Quote:
Originally Posted by dazzer89
UK. Increased spending initially, rode out the worst of it, and now since this government came in, we've had 3 successive quarters of slowing growth and now shrinkage of the economy.
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Right. They came in in May 2010 and instantly had such an impact that they slowed down recovery in the quarter April -> June 2010.
The issue with the ConDem policies isn't austerity it's the lack of policies promoting growth. Just throwing money at the public sector is
not growth - just ask the communities that are, necessarily, having this unsustainable life support taken away from them.
Quote:
Originally Posted by dazzer89
Sweden. High taxes. High public spending, allowing tax cuts to fight recession. No austerity shocks. Lots of jobs around.
|
Really.
http://www.indexmundi.com/sweden/unemployment_rate.html
Not immune despite not having much of a financial services sector, and it should be noted Sweden have been rolling back the size of their state.
Also noteworthy is that Sweden have been paying down their deficit for quite some time and are very happy about it. How odd given that running deficits is apparently business as usual.
Australia also did much the same thing, a huge austerity package relative to ours, however they actually paid off their public sector debt, in full, and had funds in the bank to throw at it.
We entered in a totally different situation, even without stimulus spending the structural deficit was unsustainable.
Quote:
Originally Posted by dazzer89
Public spending, like it or not, is the key to a smoothly running, shock resistant economy. Also, Germany. Increased spending, came out of recession before anyone else.
|
Agreed on the first point, that's common sense, however it's about how much of it you do.
Interestingly Germany is already engaged in austerity measures.
http://dealbook.nytimes.com/2010/06/...erity-package/
Quote:
|
"The German state budget was balanced in 2008 before the crisis began and the deficit came only then," Horn told Deutsche Welle.
|
Are we seeing a pattern here? Again the budget was balanced pre-crisis, not already running deficits.
They seem to be doing ok despite the impending austerity bite.
http://online.wsj.com/article/BT-CO-...12-705004.html
Quote:
|
WIESBADEN (Dow Jones)--Germany's economy in 2010 grew at its strongest rate since the country's reunification, propelled by buoyant exports and rising investment, the Federal Statistics Office said Wednesday.
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Quote:
Originally Posted by dazzer89
They're simply incompetent, but not only that, downright bloody irresponsible.
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Yet almost everyone agrees that it's required and vital for the future prosperity of the country and the general consensus, beyond those on the economic left, is that either pain is felt now or more pain later.
I agree that incompetence is there though, to appease Liberal Democrats many pro-growth policies traditionally associated with the Tories aren't happening.
---------- Post added at 11:26 ---------- Previous post was at 11:23 ----------
Quote:
Originally Posted by Chrysalis
as I said ignition if tax cuts dont have other consequences such as spending cuts then no problem, but in this case it isnt the case. Whats going on now is basically giving money back to people who dont need it so much and taking it away from others who need it more simply because the tories think its otherwise 'unfair'.
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OK, firstly no-one is giving money 'back' to me through tax cuts they aren't taking it in the first place. It starts out as my money, not the state's.
Secondly the more I have the more I will spend, the more I spend the more money flows, the more money flows the better off everyone is. Your constant discussion about how I will automatically use all of this for saving holds no value at this time due to low interest rates and high inflation.
Tax cuts stimulate production and stimulate economies - that's why VAT was dropped - higher production and healthier economies means all levels of income end up better off.