The Comprehensive Spending Review Thread

[nomadking]

Government spending was way too high, long before any international financial problems. They were having to borrow to finance the excessive spending long before then.

In a household, if you are having to borrow in order to support your standard of living even though times are good(eg bonuses, overtime), you should be cutting back, as there will inevitably come a time when the overtime etc stops. Even if times remained good, you would have to take out ever increasing loans just to maintain the repayments on the previous loans, never mind the existing spending commitments.

Borrowing in bad times is one thing, but your spending & standard of living has to be such that when good times return, you can repay the loans and not have to borrow even more.

[danielf]

A nice BBC roundup of the scale of cuts in Europe.

[Derek]

And a nice round-up from the beeb about the winners and losers.

http://www.bbc.co.uk/news/uk-politics-11569160

The key announcements:

* About 490,000 public sector jobs likely to be lost
* Average 19% four-year cut in departmental budgets
* Structural deficit to be eliminated by 2015
* £7bn in additional welfare budget cuts
* Police funding cut by 4% a year
* Retirement age to rise from 65 to 66 by 2020
* NHS budget protected; £2bn extra for social care
* Schools budget to rise every year until 2015
* £30bn capital spending on transport
* Permanent bank levy

Bloody tories eh? Destroying the NHS and schools...

[danielf]

Originally Posted by Derek

Bloody tories eh? Destroying the NHS and schools...

For the record: You never heard me say that. I dislike Partisanism regardless of orientation. We could do with less of it.

[Horace]

Originally Posted by nomadking

Government spending was way too high, long before any international financial problems. They were having to borrow to finance the excessive spending long before then.

If it was too high under labour it was even worse under the Conservatives.

[nomadking]

Originally Posted by Horace

If it was too high under labour it was even worse under the Conservatives.

Measuring things as a % of GDP is very misleading, as when GDP is high any measure looks artificially low. When GDP is high, borrowing should be negative(ie paying back loans) as in IIRC Jan 97, paying back £8billion. If you don't, when exactly are you intending to pay off the debt?

[Derek]

Originally Posted by danielf

For the record: You never heard me say that. I dislike Partisanism regardless of orientation. We could do with less of it.

It wasn't directed at you, rather at some folk who immediately pounce on any conservative idea as being evil yet are somewhat less vocal when asked how they would tackle the problem.

Originally Posted by nomadking

Measuring things as a % of GDP is very misleading, as when GDP is high any measure looks artificially low.

Exactly. And when GDP is low - such as it is during a recession, the measure looks high.

The British economy entered recession in late 1990 and stayed there until 1993. Coincidentally the only period on Horace's graph when you could claim the budget deficit was 'even worse under the Conservatives'.

But let's not allow facts to get in the way of a good old fashioned partisan stat-swapping fight.

Originally Posted by Derek

It wasn't directed at you, rather at some folk who immediately pounce on any conservative idea as being evil yet are somewhat less vocal when asked how they would tackle the problem.

Well Derek that has happened in either direction across decades of a two party, first past the post, political system.It's tedious coming from either side.

If we could get past party political posturing and actually take what is good from all parties we might just survive and thrive.

[danielf]

Originally Posted by Maggy J

Well Derek that has happened in either direction across decades of a two party, first past the post, political system.It's tedious coming from either side.

If we could get past party political posturing and actually take what is good from all parties we might just survive and thrive.

^^

This.

[nomadking]

In a recession you tend to have to borrow because revenue(ig taxes) goes down, and you have to protect core spending such as the NHS The idea is, that when in a boom time you pay off the loans, so that you can borrow again when the next inevitable recession arrives.

[Sirius]

Originally Posted by Derek

And a nice round-up from the beeb about the winners and losers.

http://www.bbc.co.uk/news/uk-politics-11569160



Bloody tories eh? Destroying the NHS and schools...

Bloody hell i thought Arthur had turned up then to enlighten us all on his view.

[Pog66]

Originally Posted by Sirius

Bloody hell i thought Arthur had turned up then to enlighten us all on his view.

No - it had a link.....

Originally Posted by Sirius

Bloody hell i thought Arthur had turned up then to enlighten us all on his view.

Give it time ...

On another note - I just saw PMQ's and my word, Ed Miliband is so out of his depth, cannot see him lasting long at all as Labour Leader.

[mertle]

all can say reap what you sow is my motto on this fiasco.

Thatcher put millions on the dole to threaten unions. then we had air of atitude of telling them get a job when none was around. What happened we got first tory new leaders then labour come up with brainwave ways of job creation.

Private sector was not budging to create massive new jobs there interest in profits for rich in paying dividends and noone going to muccle in there confort zone of playing rich. What else options where there goverments had this atitude make jobless work for there money.

Well yes but you cant give them dole money for 40 hours week they have to have minimum wage. So the quango's was born and mega public sector jobs creation. Reap what you sow.

Both tories and labour have since thatcher destruction have had embattled to reduce unemployment while private companies job shed like it had lepracy. Often when big companies was scared they was reducing giving dividends to filthy rich investors. When seriosly they should been keeping it for recessions.

Now I will say why its high there is simply too many working people for jobs now and the population rising. Manufacturing in this country is dieing bigtime needs to be addressed while predominatly third world nations get stronger they become threat for contracts with cheaper labour/costs.

Then we have the work moving to mechinism computers/robots are taking jobs away in alarming rate as its more cost effective but makes companies massive profits which go to rich shareholders in dividends. Bosses cream more of the cake while the little man is squeezed. These rich people dont want to share this ill gotten wealth then spread it all these tax havens so the tax dont snaffle it.

Then we have the forcing to work longer in life because the companies/governments wont pay fairer pensions.

Simple greed self centred atitudes is got this country in mess. That GREED and self centred atitude is also driving this review. There nothing in this review which tackling root causes the RICH.

Close those tax havens whats earned in this country is spent in this country give and take obviously holidays. If they dont want to live here then fine them 75% of there entire uk earnings. Encourage the businesses to employ instead making workers 2 to 3 jobs flogging the poor workers. I do this on business by business if they got the money they should employ further staff and regulate so it dont come out workers wages in cuts.

Make laws to stop this stupid waste of money going to rich in dividends CAP it so companies have the funds to cover ressions if business cant do it themselves we have to bottlefeed them sensible fiascal planning.

We have to stop mechism for the sake off profiteering. I fear this is a massive contribitory to our unemployment.

Another is if you enough money to live your life then dont work it takes jobs away from others it selfish atitude. I dont mean if they have few thousand in bank for a rainy day I am talking these who win mega money like a lottery then stay in work. Go out enjoy your life why would work when you can do anything. I understand they possible friends and you like the job but I see it as selfish thought when people are desperate for jobs.

It might hurt people some will disagree but its what wrong with this country