Quote:
Originally Posted by Damien
Tax cuts are a permanent cut to your income. Furlough was added to the debt. If the markets think you can meet your debt obligations they don't see it as a risk. If they think it is a risk then they want higher interest in return for lending to you.
The bank had no problem giving me a mortgage but if I decided to cut my income and replace the lost money by using a credit card then I would be seen as a risker proposition.
The Government gave the market's confidence they knew what they were doing with the furlough costs and now the Government isn't giving such confidence.
It's not as if I am making this up. You can see it in the markets.
Why did you bother starting this line of conservation if you're just going to be dishonest and sarcastic about it?
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This is all on the predication that the tax cuts will be a massive failure and not encourage any growth and therefore increase earnings. Basically "the markets" are betting on UKplc to fail.
But if the government had done nothing, where would the stimulus for growth come from?
The economy would just stagnate further.
You could say it is a gamble, and it is. But I'd rather somebody do something rather than sit on their hands.
If she pulls it off, she may save the Tories, if she fails, she's just the latest Tory PM to blow it.
I wasn't being sarcastic, just highlighting the disparity in thinking. The 37bn should be looked at as what it is meant to be - an investment not a loss.