The Budget

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Well Ladies and Gents,

The Tories have gone back to the old school and decided that it isn't enough for the banks to repay the deficit (and they will, as we loanded them the money to stay afloat), he has decided we should pay for it as well, effectivly paying it twice.

What are we all thinking about it so far? at what point is the solution to keep everyone where they are financially, and then charge them more in VAT.

the whole thing is a bloody joke and I think harmen got it right when she said "Lib dems sold out to ride on the coat tails of a tory government". All they say is that we are in debt, and yet debt only becomes a problem when you cannot afford the payments.

 

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Is it any suprise though.

The people that got us in all this mess get away with it whilst its the small man that has to sort it out, its always like that and thing like that will never change.

I just wonder what that one eyed scottish idiot would have done if he had stayed in power (no offence to scottish people just Mr Brown)

 

I think it will be fun.

 

Except for the usual price hike because theres been a budget followed by another one come January for the VAT increase neither of which will actually show any clear relation to the VAT increase itself.

 

Well he had the right idea, the government is the only one with enough power financially to prop the economy up, cuts mean job losses, job losses mean less people spending money in daves pineapple store, less people spending money in daves pineapple store means dave makes less money, dave making too little money means dave is out of a job *rinse and repeat*. You need to prop it up until it starts growing again, not cut back, tax the people left in work whilst freezing everyones wages.

There is the right way to do it, and the libcon way to do it, which is "I've got enough so lets force everyone into the private sector so that my brother who owns Dave's Power Plant can make more money"

What do you mean?

 

But who funds the government?

 

Got to agree with this, a lot of what both the LibDems and Conservatives were saying during the election made sense to me but their economic plans are fairly frikkin terrifying to anyone who doesn't already own a 40 bedroom mansion.

 

The problem before was that the banks were not lending money, NOW though, the problem is that the sheep in this country have been convinced that we are all poor and cannot afford to buy anything we want, so instead of companies going bust because the bank won't lend them to the money to order goods, they are going bust because we are told we shouldn't spend. So the goods they have just ordered, people are feeling ashamed of buying.

I don't know about you, but I work 40 hours a week for one thing to make money to then enjoy the fruits of my labout and buy nice things and enjoy life. I don't work week in week out to stick it in the bank, skimping on the good stuff because i'm being told it's irrisponsible. If you want to choose to not buy new clothes, or a new TV, or save more despite earning 40k a year then be my guest, but I intend to spend my wages and by doing so, I am propping up the economy a damn site more than the stinking tories.

And that doesn't mean I don't save etc, I do, but it means I'm tired of being made to feel like some sort of muppet because I choose to buy McDonalds instead of cooking, or buying coke instead of just drinking tap water. **** that.

 

B.o.h.i.c.a !!

 

Actually I have Bohica as my main toon in WoW.. but I digress.

I find it amazing that all these people are moaning about what the Tories are doing, what they fail to understand is that it's because of the previous Labour government that we are in such a mess.

Lets be fair here, if the outgoing labour party had any inkling that they would have gotten back in they wouldn't have allowed as much public spending to have occured, but they knew deep down that they didn't stand a chance so that thought to themselves that if they can't have it no one else can and so they spent all the money.

We were discussing this over lunch and the general consensus was that we needed another Maggie in power so that the hard decisions were made and life did get better, everyone is aware that life is going to be hard and to be honest a 2.5% VAT increase isn't that bad, it could have been a lot worse at 7.5% (which is what some thought it could go to).

I remember the last time the Tories came to power and had to clear up the mess of the Labour party, the same thing has happened now as back then, obviously the short minded people will forget about that and decide that Labour were the best thing since sliced bread.. but trust me they weren't.

Come back and tell me in 12 months if it's been a bad year or if infact the measures that the government have done their best and life is a little better than it was say 6 months ago.

 

I don't disagree, it's just my problem is this, my life hasn't changed one bit since this whole thing started, every one has banged on about something that frankly hasn't effected me in the slightest, in fact, this government is going to do nothing except make my life worse, there are no two ways about it, it really is that black and white for a huge portion of people that have done nothing but go to work, pay their taxes, pay their bills and carry on with life throughout this past years. I frankly don't care about the debt, it hasn't effected me, and if the debt is the only problem we have, then why does it take such drastic measures to fix when we have interest and loan repayments coming from the banks we bailed out.

This budget is a wholly negative one pretending to cure a deficit that is one of the lowest in the 1st world when compared to GDP percentage, how much did Labour over spend exactly? take out the bailout cost and it isn't that much, it certainly isn't an unmanageable debt nor one that effects mine or anyone elses life.

The whole thing is blown out of proportion and made to look so much worse than it is. All to SAVE 30 billion or whatever it is. In an economy of a trillion it is small change that could be clawwed back without even rippling the pond of the average joe that is me and you.

I stand by it, this budget has made my life worse than any recession or public debt ever did.

 

I agree 100%. (I would go on a rant about how much I dislike labour and everything they stand for but I stop here) Repped!!!

 

Do you actually believe a word of what you just wrote? does simple economic principle escape you?
'i'm alright jack, thats all that matters'

that 'dept' that means nothing to you, will eventually cause the UK economy to spiral into the ****ter, getting out of debt quickly, should be the goal of every prudent PERSON, let alone every prudent government, but of course we live in a world where everyone wants to live beyond their means and complain about tax hikes
you could do a lot worse than a minor hike in VAT, **** i would of jumped up cigs and booze for good measure
hell, i would support huge tax hikes if it meant pouring the investment back into the national infrastructure, provided that pouring had oversight, i hate watching how pathetically poor the government is at due diligence in spending our money
give them a few years to clean up the mess Tony and Gordon left, and then we can look at improving the rest after that
as for that 'the banks will pay us back and then some'
the banks should of been left to rot, they got themselves into that mess, but everyone wants an easy out, hard work is just too darn hard!

 

If the banks were left to fail then we would be truly screwed.

 

I highly doubt that
but the media/financial fear-mongering seemed to work

 

I'd love to see an explanation of that statement, it would actually make your post meaningful....

 

You doubt it? had they gone bust, what about the hundreds of thousands they employ directly and the millions of people in the UK alone that work for companies that rely on the credit extended by them? who would they have gone to work for?

Under Labour the public debt reached one of it's lowest levels in a hundred years (2002), only surpassed by the rapid pay offs of the Tory government beforehand (in 1990/1991), in fact, it dropped for 5 years straight after 1997 under labour and only really shot up again when the credit crunch hit. In fact, during labours term the GDP has never seen an increase so high.

They got a lot wrong whilst they were in, but we have all been convinced and blinded into believing that this debt is going to kill our first borns, make us homeless and then starve us to death. It simply isn't the case. Yes they did spend spend spend in the last 2 years of power, but they only increased the national debt by one percent a year during the 6 prior years.

All the tories do, is cut cut cut, and then realise quickly enough that they actually have to back track and start spending, a national debt is a natural thing and the tories telling us otherwise is a load of bollocks, them convincing us they are saving us is the same, it can be done without such harsh cuts. Last time they cut everything down, the first increase wasn't 1 percent like labour, it was a 14% over 4 years.

They can cut now, play the holy card, but as soon as crunch time comes and they once again realise "we can;t be tight all of our lives, we actually have to spend money" it will be a huge jump and they won't be able to explain it off.

 

Could have been worse tbh..The past few Labour budgets were a joke.

Considering it was Labour that left them with the horrendous hidden toxic debt.

 

Okay,

If one big bank fails and no one props them up either government or merger then this is what will happen.

The stock markets will collapse because of fear of other big banks, this is because all banks are connected to each other. All company's are connected to banks so company's stock will collapse. Once the company's start to go you will see redundancys then even more people losing their homes and no one spending any money at all.

If a normal business fails, like a manufacturing business it will not have such a wide ranging impact because it will not be connected to as many other businesses.

 

Good companies that don't need a bailout.