Quote:
Originally Posted by Traduk
Re-arranging the deck chairs (cabinet re-shuffle) will resolve nothing because the concept of trying the Canadian model for recovery a global downturn could never work and will not. The flaw in thinking was wrong in the last election run up, is wrong now and will continue to be wrong and new players, playing the same tune will not help.
The think, sadly that due to the folly of the out of touch rich boys at the helm, it will be a long time before Britain is great again.
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Either going all the way with it, heavy austerity accompanied by tax cuts for all to both pump demand and supply, or increasing investment alongside tax rises was probably the way forward.
What we got instead was a severe reduction in investment, higher welfare bills, higher taxes, high real inflation (not whatever magical numbers the government produce). Government front loaded tax increases and investment reduction while back loading austerity measures, meaning we got the private sector contraction from tax increases immediately,
Exports have risen to non-EU nations but it's not close to enough to offset the reduction in demand at home and the cash hoarding the private sector the government are so horny over have been doing.
The only real demand at home has been debt driven buy to let.
The famed triple-A is a complete wash as my thread said. The only reason the UK has cheap gilts is because the BoE is buying them all, this is only going to continue despite increasing evidence that it is now ineffectual and the evidence for its initial effect is debatable. These purchases are the only reason the triple-A is there, and while the government allows the people to be rinsed by tax increases and real wage decreases due to high inflation and a cash hoarding private sector there is only one way for things to go. Trickle-down is nonsense, the evidence says the top merely use the increased cash to further increase the income gap through increased influence, the government has pursued a 'trickle-down lite' model with the worst of everything, taking money from middle class and below and handing it to business who, rather than investing it in the UK, invest it elsewhere or hoard it.
Absolute failure by an out of touch cabinet living in the Westminster bubble, brought up in privilege, with virtually no-one with any exposure to the real world.