Labour is right - IMF says we should abandon austerity measures

[Gromit]

Seemingly agreeing with Labour that the austerity cuts introduced by the Coalition Government are harming the Economy and dragging us back into recession, the IMF is calling for them to be scrapped and for more stimulus money to be spent.

// The International Monetary Fund has called on the US and Europe to abandon fiscal austerity and switch to stimulus measures, warning that the global economy faces a "threatening downward spiral". //

http://www.telegraph....-downward-spiral.html

Labour have said we are trying to pay back our debts too quickly and that is causing too much unnecessary pain. The IMF agree. Can and should the Government change course, or would that be a U-turn too far?

[Sqad]

Gromit.....who knows?

One can pick one's economic expert to either support or rubbish one's argument.

[factor-fiction]

Concerted action would be needed on this- it's not something teh UK can do onitwn. In teh absence of an agreed combined approach I think the UK government has to stick to what its doing.

[Davethedog]

Thing is its the ordinary people who suffer, but the rich who make the money when the economy recovers. I see oil, power and banks making huge profits but nothing being done to restrict prices.

Yes austerity is to hard lets tax the excess profits and leave public services alone, after the fats been cut.

[jake-the-peg]

Amazing what a change of leadership does

Only 3 months ago they were backing George Osbourne's austerity cuts.

http://www.guardian.c...conomy-george-osborne

I wonder if this is the start of a rocky relationship between Osbourne and Legarde

[factor-fiction]

What excess profits, dave?
Do you want banks to make huge profits or huge losses?

[Sqad]

Dave....there is more "fat" in the public sector than in the private sector.......so if it's "fat" that you are looking for to "slim down"........then try the public sector.

[anotheoldgit]

What do you think Gromit?

[Davethedog]

Sqad do you have an example of the fat? The right wing press keep telling us of these jobs, however I note that tory councils are having to make as many cuts as Labour, why? Surely they didn't encorage the fat. I love the way the right wing media keep talking about left wing conspiracies, whilst perpetuating thier own right wing agendas.

If you can convince the ordinary people that local services are excessive then you can make sure that private business remains in a postion to rip off the populace.

As for the banks they should have practiced what they preached 2 years ago ,though I know that it couldn't of happened because ordinary people would of lost homes and businesses, and let the fitest survive.

[factor-fiction]

Hi Steve5- I thought profits were better than losses. More profit generally means more corporation tax and improved share values which helps our pension fund valuations. What is an acceptable level of profit?

[Gromit]

AOG

I think it is probably too late and the Economy in the US and Europe has already stalled.

The debt suits the Conservative's ideology because they have an excuse to cut the public sector. When we haven't had debts to payback in the past, Conservative Governments have cut the public sector. The idea is that private companies will do the work. The problem this though, is the banks will not lend private companies the money they need, so the private sector has stalled too.

It all points to a very bad year ahead of us.

[Sqad]

Dave....yes......just an example.....the NHS alone costing the country about £2-4 billion a year to finance....believe me there is quite a bit of "fat" in there.

Fine tax and hit the bankers bonuses, I have no problem with that,but that won't bring into the Treasury as much as you might think and the downside is, that they may well "bugger off " somewhere else. "Good" you might say, but that would be a considerable finacial loss to the UK.

[Gromit]

Sqad

The problem with cutting the NHS is you are in effect saying axe a load of jobs. That wouldn't save that much money, and Government loses a lot of tax revenue, and the local economy loses people with disposable income so that has an effect on businesses and jobs locally. The result is you are still paying a lot but getting a greatly poorer service.

[Sqad]

Gromit.....I understand and respect your logic, but I do not agree that the service need suffer, as in my opinion it is a wasteful and non cost effective service, not followed by any other country.

Can you still remember the flagship Labour Party war cry of the 70's and 80's, " The NHS the envy of the World"

We haven't seen that for a decade or two.

Before the election, both parties said that there would be deep cuts, the only difference being , the speed of cuts.

[Old_Geezer]

The trouble with sliming down the public sector is that it isn't such a 'win' as it is for a private company to shed staff and thus costs. If the public sector make folk redundant then it's likely to end up paying those without a job welfare anyway. The fact that it is a different budget is of interest to accountants who like such sleight of hand, but not so much to the tax payers who have to fund the reality.

Mmmm ... so why do banks have to either make huge losses or huge profits ? Can't they just make a reasonable profit instead ? Any more suggests someone somewhere is paying more than is fair to fund excessive gains by the banks.

[Gromit]

sqad

From 2002 to 2009 the Labour Government invested heavily in the NHS, replacing dilapidated buildings, employing more doctors and nurses.

The Coalition Government's attempt to reform it so far, will cost even more and lead to a poorer service say health leaders.

http://www.telegraph....ns-nursing-chief.html

[Sqad]

Gromit...I agree the NHS is the "baby" of the Labour Party, they have always thrown money at it and doctors have always done better under a Labour Government.

Fine....if that is their choice of funding it, I have no objection...BUT we cannot afford to do it now and haven't been able to for the past 20years. Something has to change, the NHS cannot continue in it's present form. The BMA negotiated a deal with the Health Secretary(can't remember her name) which was beyond their wildest dreams......more pay for less hours........madness.

[jake-the-peg]

There is more fat in the public sector than the public one?

No -
In the private sector it's just at the top

http://www.bbc.co.uk/news/business-14781254

Tob bosses salaries up 187% over the last 10 years

*with no corresponding increase in shareholder value*

Shareholders being pension funds for a lot of us!

[dave50]

Why do people keep making the mistake of thinking that if there are job cuts in the public sector then tax revenue from this people will be lost? They are paid for out of the public purse in the first place, so any 'tax' paid is just the same money repaid, not any extra.

[DrFilth]

dave some will get more in benefits out of work than pay when in work

so joe public pays for them to do nothing