It seems Austerity only applies to the peasants?
http://www.dailymail.co.uk/news/article ... ansom.html
Austerity
Re: Austerity
I thought it was about most people being penalised for mistakes made and overpayments by the bankers....Termites Dream wrote: ↑Tue Jun 27, 2017 9:56 am Austerity.....Is that about living within your means.
Re: Austerity
Oh but it was history.... as austerity is still very much alive.... and is slowly bringing up inflation, making people poorer (some richer) and the government still cannot balance it’s books.... The present 4 year term is predicted to still add to the defecit.... (so much for Corbyn’s economics being bad)Termites Dream wrote: ↑Tue Jun 27, 2017 11:49 am Jim....We have been OD at the bank as they say for many years. As for the banks I would not have bailed them out. But its all history now.
The £1bn being given to NI in the shady deal, will also in reality be more like £3bn+ - when you add in the items the Tories were forced to concede, along with subsidising a lowering of corporation tax in NI...
Never mind, they can impose wage cuts on nurses....
Re: Austerity
I think the problem is we use the terms debt and deficit interchangeably when that is, of course, not the case.
The deficit is simply the difference between what the Govt takes in taxation, and how much is commited to spend in any one year.
In the first year it is quite simple, the Govt wants to spend a trillion pounds, its income is 800bn, therefore it must borrow 200bn
Deficit = 200bn, debt = 200bn
If it wants to keep the same level of spending the following year [assuming it borrows at 1%, just to make the maths easy]
The government still gets 800m to play with, however to keep spending at the same level it now needs to borrow 200bn + 2bn interest
Deficit = 202bn [even with no increase in govt expenditure] debt = 402bn, and so on, so even assuming no budget increases and not allowing for inflation, just by standing still we get
Deficit = 206bn Debt = 608bn
Defict = 212bn Debt = 820bn
and so on
Since the Tories took power and have increased tax revenues by reducing rates [and yes, tax cuts do increase tax revenue, even if you think they don't] and decreasing government spending they have bought the deficit down, but not by enough to cover the interest charges on the previous debt, so the debt continues to increase [and so do the interest payments].
The only way to shrink the debt is to
a) cut government spending and increase tax revenues so that not only do tax revenues cover all government spending, they also cover the annual interest payment and a little extra as a capital repayment.
b) Default on the loan
c) restructure it on better interest rates [if you can get them] then implement plan a)
d) Close eyes, stick fingers in ears, yell "LALALA" very loudly, and hope your kids are so much smarter than you, so they can come up with some wizard wheeze to get out of the unholy [and ever increasing] mess they have inherited, courtesy of the selfishness, greed, and delusional thinking of their parents, one that we were too stupid to come up with
Corbyn seems to have chosen plan d) which I have to say I wouldn't have been a big fan of, personally
The deficit is simply the difference between what the Govt takes in taxation, and how much is commited to spend in any one year.
In the first year it is quite simple, the Govt wants to spend a trillion pounds, its income is 800bn, therefore it must borrow 200bn
Deficit = 200bn, debt = 200bn
If it wants to keep the same level of spending the following year [assuming it borrows at 1%, just to make the maths easy]
The government still gets 800m to play with, however to keep spending at the same level it now needs to borrow 200bn + 2bn interest
Deficit = 202bn [even with no increase in govt expenditure] debt = 402bn, and so on, so even assuming no budget increases and not allowing for inflation, just by standing still we get
Deficit = 206bn Debt = 608bn
Defict = 212bn Debt = 820bn
and so on
Since the Tories took power and have increased tax revenues by reducing rates [and yes, tax cuts do increase tax revenue, even if you think they don't] and decreasing government spending they have bought the deficit down, but not by enough to cover the interest charges on the previous debt, so the debt continues to increase [and so do the interest payments].
The only way to shrink the debt is to
a) cut government spending and increase tax revenues so that not only do tax revenues cover all government spending, they also cover the annual interest payment and a little extra as a capital repayment.
b) Default on the loan
c) restructure it on better interest rates [if you can get them] then implement plan a)
d) Close eyes, stick fingers in ears, yell "LALALA" very loudly, and hope your kids are so much smarter than you, so they can come up with some wizard wheeze to get out of the unholy [and ever increasing] mess they have inherited, courtesy of the selfishness, greed, and delusional thinking of their parents, one that we were too stupid to come up with
Corbyn seems to have chosen plan d) which I have to say I wouldn't have been a big fan of, personally
Re: Austerity
No, it´s not history yet - it´s still ongoing. Only yesterday Italy´s government bailed out 3 banks: http://uk.reuters.com/article/uk-eurozo ... KKBN19H27UTermites Dream wrote: ↑Tue Jun 27, 2017 11:49 am Jim....We have been OD at the bank as they say for many years. As for the banks I would not have bailed them out. But its all history now.
Re: Austerity
You forgot to mention e): inflation, which is the most convenient way for governmentsPete G wrote: ↑Tue Jun 27, 2017 2:59 pm The only way to shrink the debt is to
a) cut government spending and increase tax revenues so that not only do tax revenues cover all government spending, they also cover the annual interest payment and a little extra as a capital repayment.
b) Default on the loan
c) restructure it on better interest rates [if you can get them] then implement plan a)
d) Close eyes, stick fingers in ears, yell "LALALA" very loudly, and hope your kids are so much smarter than you, so they can come up with some wizard wheeze to get out of the unholy [and ever increasing] mess they have inherited, courtesy of the selfishness, greed, and delusional thinking of their parents, one that we were too stupid to come up with
Re: Austerity
And, whilst we are on the subject of the DUP 'bribe'
I'm going to have to admit defeat this this one, I mean, I get how the Tory Scum have done an outrageous deal with the Fascist DUP in order to cling onto government, but I'm having a bit of trouble wrapping my head around the logic of it, perhaps someone could help.
So the DUP have demanded 1bn+ of extra NI investments be made.
The lions share of which were infrastructure investment spend previously agreed [400m for physical infrastructure, 150m for upgrading the Broadband infrastructure etc.] that were cancelled due to austerity. Restoring this infrastructure spend is directly in line with Corbyn's stated manifesto for NI So presumably the Labour Party are claiming that the DUP have made an outrageous deal by forcing the Tories waste loads of money to reverse austerity cuts completely in line with documented Labour Party Policy. So how does that work, exactly?
Or perhaps it is the outrageous 350m of 'new' money, which could have been given to the NHS for new nurses and stuff which has instead be given, at unreasonable DUP demand to .....errrr..... NHS(NI) to pay for, presumably 'new nurses and stuff'?
All have which the Labour party claimed they could have easily covered the required expenditure without access to the 'magic money tree' which they now claim the Tories are running to, weird eh?
Or maybe something fundamental has changed in the DUP, which has turned them into warmongering fascist thugs, as opposed to the prudent partners in peace they would have been, presumably, had they accepted the support deal from Brown [2010] or Milliband [2015] which would not have put the peace of NI in jeopardy because, of course, the Labour Party wouldn't take such a risk just to be in Government right? Perish the thought.
You guys must be much better at this sophisticated political malarkey than I am, I'm afraid I'm not bright enough to pick the nuances out of this one.
Little help here?
I'm going to have to admit defeat this this one, I mean, I get how the Tory Scum have done an outrageous deal with the Fascist DUP in order to cling onto government, but I'm having a bit of trouble wrapping my head around the logic of it, perhaps someone could help.
So the DUP have demanded 1bn+ of extra NI investments be made.
The lions share of which were infrastructure investment spend previously agreed [400m for physical infrastructure, 150m for upgrading the Broadband infrastructure etc.] that were cancelled due to austerity. Restoring this infrastructure spend is directly in line with Corbyn's stated manifesto for NI So presumably the Labour Party are claiming that the DUP have made an outrageous deal by forcing the Tories waste loads of money to reverse austerity cuts completely in line with documented Labour Party Policy. So how does that work, exactly?
Or perhaps it is the outrageous 350m of 'new' money, which could have been given to the NHS for new nurses and stuff which has instead be given, at unreasonable DUP demand to .....errrr..... NHS(NI) to pay for, presumably 'new nurses and stuff'?
All have which the Labour party claimed they could have easily covered the required expenditure without access to the 'magic money tree' which they now claim the Tories are running to, weird eh?
Or maybe something fundamental has changed in the DUP, which has turned them into warmongering fascist thugs, as opposed to the prudent partners in peace they would have been, presumably, had they accepted the support deal from Brown [2010] or Milliband [2015] which would not have put the peace of NI in jeopardy because, of course, the Labour Party wouldn't take such a risk just to be in Government right? Perish the thought.
You guys must be much better at this sophisticated political malarkey than I am, I'm afraid I'm not bright enough to pick the nuances out of this one.
Little help here?
Re: Austerity
Deliberately, actually. I mean I do appreciate is as a completely valid economic trick to reduce your own debt by bankrupting your children so gently that they don't realise they are being shafted, however when Maggie crushed the Unions she removed the main engine of economic growth by inflation, pay inflation, and without pay inflation leading the curve, the only way to grow the public economy is to shrink government expenditure, or fuel it with credit.
Guess which one all subsequent electorates have chosen?
