Quote:
Originally Posted by heero_yuy
People should remember that the reason we can't spend our way out of recession like other countries is because we spent our way into it. For that reason we have to have severe austerity instead.of light cut backs.
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We haven't had severe austerity and were perfectly capable of spending our way out of recession, indeed that's to an extent what George is doing now as his pre-election bribe and attempt to fluff up the GDP numbers.
We had the wrong kind of austerity with the butchering of investment as it was more politically expedient than tackling current spending.
The state didn't spend its way into recession. Labour are guilty of spending too much, sure, but to say that that spending caused recession is ridiculous. It was a housing bubble that still hasn't deflated, private debt built on that housing bubble, and casino banking to provide the cash to fuel that bubble that caused the issues more than anything else.
We needed and still do need big public sector investment to make up for 30 years of underinvestment.
---------- Post added at 14:51 ---------- Previous post was at 14:50 ----------
Quote:
Originally Posted by Chris
Yes, well the Eurozone *is* a disaster. And that is rather the point, isn't it. Congratulations for choosing the USA as your first example (world's biggest and most advanced economy by a country mile) and Canada as your second (easy access to said big, advanced economy).
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I chose the USA purely because they decided to forego austerity in the name of stimulus until pretty recently. Pretty good contrast to the UK where the economy was growing again right up until George got his hands on the treasury when it promptly pretty much stagnated.
Quote:
Originally Posted by Chris
The problem this country faces is not dogmatic austerity, it's dogmatic adherence to the failed European project.
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Quite possibly. In which case a vote for UKIP would be the way to go, the other parties including the Tories being devoted to said failed project. While they are reluctantly offering a referendum it is abundantly clear that the Conservative leadership have no interest in anything other than cosmetic changes and a vote to stay in.