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Originally Posted by Chrysalis
If you reffering to the problem where low paids jobs are worse off for people than some on benefits, I agree thats a problem that needs fixing. The only situation where I would find acceptable for someone on benefits to be as well off as someone working is if they have no choice ie. due to health reasons or are retired.
I also have took in your views and my concern is how do we raise GDP with a shrinking public sector. The private sector wont pick that up unless we start producing things that can be exported. I will check myself into the 2.5% annual cuts, that seems a very low figure compared to what I have read reported.
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In purely fiscal terms it isn't even cuts Chrysalis it's just the slowing of growth of public expenditure below the rate of inflation.
Stop thinking about 'things', we are a service based economy and export skills far more than we do physical objects. We have a niche in higher tech manufacturing if we pursue it properly but our place as a manufacturer of any scale is largely over.
Germany is the exception rather than the rule as they were pretty much reconstructed by the allies post-World War 2 and kitted out with nice shiny industrial hardware until reunification.
I largely agree with you, however you are pointing out what's wrong then suggesting that, rather than fix what's wrong, the government spends money on public services. If exports are a route out of the mess that is what the government should be legislating to assist.
It looks as though the GDP figures have reminded them of that, and hopefully more pro-capitalist voices will be heard more given that they are being relied on.
---------- Post added at 13:55 ---------- Previous post was at 13:39 ----------
Just a thought to mull over.
http://www.independent.co.uk/news/wo...y-2197778.html
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Enough is enough, says IMF as spending spree revives US economy
Obama warned that America's borrowing is getting out of hand – while Cameron and Osborne praised for deficit reduction plan
Driven by an unprecedented mix of tax cuts, public spending increases, low interest rates and the direct injection of money, the American economy expanded by 0.8 per cent in the last three months of 2010, an annualised rate of 3.2 per cent. But America has been given a stern warning by the International Monetary Fund to rein in its borrowings.
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The only reason the US keeps its AAA credit rating is because it is the US and their currency is the dollar, reserve currency for much of the rest of the world. Their debts are phenomenal.
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Leading Foreign Holders of US Treasury Securities (November 2010)
Nation/Territory billions of dollars (est.) percentage
People's Republic of China (mainland) 895.6 20.6%
Japan 877.2 20.2%
United Kingdom 511.8 11.8%