Quote:
Originally Posted by sperbonzo
I'm sure that you will all howl against this reasoning, but anyway.... Good luck with that whole thing.
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I don't howl against (at least some of) that reasoning at all.
What I was saying is that cutting spending this dramatically is basically going to take billions out of the economy over a 5 year period. That money which would have been spent in the public sector will simply not be borrowed as it would have been.
The fact of the matter is that the UK's finances were not at all bad before the banking crisis. Our national debt was at around 52% of GDP which isn't that high when compared with other countries such as America and Japan. However the bailout (which should not have happened) put us at 147% of GDP.
These cuts are occurring for one reason only and that is to pay for RBS, Lloyds and all of the other failed business' we had to pay for caused by the deregulation you argue for.
No doubt the public sector is too big and manufacturing is non-existent; as are exports. But Britain is now a serviced based economy. It's short-sightedness in the past lost us our best industries to foreign competitors. Just look at Royal Mail for squandered success.
Though I'm not a big believer in capitalism so I think I'll stop here...