tag:blogger.com,1999:blog-6093560390959788459.post9015457801929679520..comments2024-03-21T09:29:25.220+00:00Comments on The Financial Crimes: I can solve the UK budget deficit at a strokeAlexhttp://www.blogger.com/profile/13775753218753337766noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-6093560390959788459.post-13347292553701433452010-05-09T09:02:23.246+01:002010-05-09T09:02:23.246+01:00@Bill Bell:
I understand economics well enough to ...@Bill Bell:<br />I understand economics well enough to know that govenment spending is not the economy - which is apparently a concept that both you and Gordon Brown find tricky.<br /><br />And I know that the velocity of money calculations that the neo-Keynesians use to push for greater state spending to "prime the pump" were done when state spending was <20% of GDP, not >50% as it is now - which is why taking £200bn (~20% of GDP) of freshly-printed money, buying up government debt, and blowing that, has made sod all difference to the recession.<br /><br />But, yeah, it's lucky we have a hung parliament - a full-scale run on the pound leading to parity with the Euro will make mental forex calculations so much easier!The King of Wronghttps://www.blogger.com/profile/04439966612208152425noreply@blogger.comtag:blogger.com,1999:blog-6093560390959788459.post-78374456427010780672010-05-09T08:52:03.583+01:002010-05-09T08:52:03.583+01:00Do any of you understand economics?
What would sl...Do any of you understand economics?<br /><br />What would slashing public spending in this way do to the rest of the economy, ignoring the massive civil unrest it would likely cause?<br /><br />Typical nonsense from dyed in the wool Tories, thank god you didn't get a majority.Bill Bellhttps://www.blogger.com/profile/16904154961709182748noreply@blogger.comtag:blogger.com,1999:blog-6093560390959788459.post-23249642963300397372010-05-01T07:43:09.124+01:002010-05-01T07:43:09.124+01:00Ah, yes, of course - slashing wages means, by defi...Ah, yes, of course - slashing wages means, by definition, slashing their final salary. Given the 3-year window for the civil service pension scheme, it'd probably also encourage a lot of people to take early retirement so their 2009 wages still counted...<br /><br />So, yeah, the extra savings would be enough to wipe out the national debt in a couple of decades. Rather better than the proposal to double it again by halving the deficit over four years.The King of Wronghttps://www.blogger.com/profile/04439966612208152425noreply@blogger.comtag:blogger.com,1999:blog-6093560390959788459.post-50891448214757413132010-04-30T22:20:13.725+01:002010-04-30T22:20:13.725+01:00Also, the pension bill £120 bn would be slashed by...Also, the pension bill £120 bn would be slashed by 25%, and cancelling agency workers in the NHS and management consultancy contracts several billion more.Alexhttps://www.blogger.com/profile/13775753218753337766noreply@blogger.comtag:blogger.com,1999:blog-6093560390959788459.post-92038423777894948102010-04-30T12:09:14.083+01:002010-04-30T12:09:14.083+01:00So, about £10bn from VAT, 14% (and 3%pa real-terms...So, about £10bn from VAT, 14% (and 3%pa real-terms cut) in public sector wages (assuming £200bn) would be worth £44bn/year, £101.7bn/year from the 1162 quangos identified by the Taxpayer's Alliance... yeah, back-of-an-envelope suggests that'll work just fine to get rid of the deficit :D<br /><br />(Of course, we need to get rid of some of the debt as well, but at least we'd stop digging the hole we're in...)The King of Wronghttps://www.blogger.com/profile/04439966612208152425noreply@blogger.com