Current Affairs 2017 General Election

[Bruce Wayne]

It's not a question of 'free money', I struggle to understand why you feel the need to simplify such an incredibly convoluted matter such as the economy.

The idea would be to make use of the incredibly low interest rates of which our country can borrow at, as to invest in a re-industrialisation strategy and lift millions of people out of a future of debt and struggle.

As for the repayments, anyone with sense would understand that with a sustainable and sensible rate of inflation, the interest would be wiped out altogether.

The way we have been doing things obviously isn't working. It's time for something new.

Okay, I'd like to challenge this if I may. Yes, interest rates are very low, but even with interest rates that low, we are paying back roughly 3% of GDP per year in interest payments. In the last 30 years, UK GDP has exceeded 3% just 4 times.

Now call me old fashioned if you like, but borrowing makes sense when your income rises by more than the cost of borrowing. When it doesn't, it's economic hara-kari.

 

[orchard]

Meanwhile, in the real world,outside May Tse-Bung's and the purple-rinse brigade's sphere of influence:

The tory economic miracle. Wage growth since 2010: Poland +23% Germany +14% France +11% UK -10.4%

You do realise we were all young once. I have said quite a few times now, I'm converted, let's spend and give everyone free money and renationalise everything. Just so long as everyone under the age of 40 understands that they are going to be paying for it. Bring it on, free money for all.......

 

[Number_25]

Okay, I'd like to challenge this if I may. Yes, interest rates are very low, but even with interest rates that low, we are paying back roughly 3% of GDP per year in interest payments. In the last 30 years, UK GDP has exceeded 3% just 4 times.

Now call me old fashioned if you like, but borrowing makes sense when your income rises by more than the cost of borrowing. When it doesn't, it's economic hara-kari.

I think it ultimately boils down to where the investment is going, and how well it's used.

Look at the extraordinary rates of quantitative easing the current government are embarking on, and how its artificially boosting a failing economy and then tell me that the track we're currently going down is working.

 

[Number_25]

Meanwhile, in the real world,outside May Tse-Bung's and the purple-rinse brigade's sphere of influence:

The tory economic miracle. Wage growth since 2010: Poland +23% Germany +14% France +11% UK -10.4%

One of my best friends left school at 15, the same age as me and was unable to find work until he was 21. He's worked in a zero-hours job for the last two years.

He was telling me how he was asked to come into work for 30 minutes work, or lose his job. The bus money cost more than his wage.

Young people deserve a better outlook.

 

[Bruce Wayne]

I think it ultimately boils down to where the investment is going, and how well it's used.

Look at the extraordinary rates of quantitative easing the current government are embarking on, and how its artificially boosting a failing economy and then tell me that the track we're currently going down is working.

The 30 year period I referenced covers all kinds of economic cycles and both Tory and Labour administrations. Are we really saying that they were all terrible and Labour under Corbyn would magically unlock the secret to Chinese growth levels?

 

[Bruce Wayne]

One of my best friends left school at 15, the same age as me and was unable to find work until he was 21. He's worked in a zero-hours job for the last two years.

He was telling me how he was asked to come into work for 30 minutes work, or lose his job. The bus money cost more than his wage.

Young people deserve a better outlook.

He left school at 15 though. Every kid in the land gets 13 years schooling absolutely free. I'm not sure it's the states responsibility to then provide jobs for those who choose to waste that privilege.

 

[Number_25]

The 30 year period I referenced covers all kinds of economic cycles and both Tory and Labour administrations. Are we really saying that they were all terrible and Labour under Corbyn would magically unlock the secret to Chinese growth levels?

The last Labour government did a lot of good for the working people of this country, however I'd admit that certain areas were neglected.

I believe that, as a country, we should be at the forefront of technological development. I believe in an economy not built on manipulating debt, but one built on the development and production of tangible goods.

What Labour are proposing probably isn't as 'radical' as I'd have liked - but at least it's something that could potentially bring great rewards to this country, and solidify its place in an ever adapting world.

 

[Number_25]

He left school at 15 though. Every kid in the land gets 13 years schooling absolutely free. I'm not sure it's the states responsibility to then provide jobs for those who choose to waste that privilege.

If memory serves me correctly, he finished with more GCSEs than me(!)

He struggled with mental health for a number of years, but by the time he was ready to play an 'active' role in society he had no luck.

 

[peteblue]

It's not a question of 'free money', I struggle to understand why you feel the need to simplify such an incredibly convoluted matter such as the economy.

The idea would be to make use of the incredibly low interest rates of which our country can borrow at, as to invest in a re-industrialisation strategy and lift millions of people out of a future of debt and struggle.

As for the repayments, anyone with sense would understand that with a sustainable and sensible rate of inflation, the interest would be wiped out altogether.

The way we have been doing things obviously isn't working. It's time for something new.

When you say it isn't working, the deficit keeps coming down and new jobs keep being created. We are doing this today.....

 

[Bruce Wayne]

The last Labour government did a lot of good for the working people of this country, however I'd admit that certain areas were neglected.

I believe that, as a country, we should be at the forefront of technological development. I believe in an economy not built on manipulating debt, but one built on the development and production of tangible goods.

What Labour are proposing probably isn't as 'radical' as I'd have liked - but at least it's something that could potentially bring great rewards to this country, and solidify its place in an ever adapting world.

Those are details though. The premise is that borrowing is good because growth will more than pay it back. History suggests that never happens.

 

[peteblue]

Meanwhile, in the real world,outside May Tse-Bung's and the purple-rinse brigade's sphere of influence:

The tory economic miracle. Wage growth since 2010: Poland +23% Germany +14% France +11% UK -10.4%

I'm convinced. Let's get Jezza in and let his mate borrow the 250Bn he promised. But remember, it'll be you that pays it back, not me.........

 

[Number_25]

Those are details though. The premise is that borrowing is good because growth will more than pay it back. History suggests that never happens.

But wouldn't you concede that if the borrowing is placed in areas/technologies of which are expected to grow exponentially - then we'll be better placed to move forward as a country?

 

[peteblue]

Those are details though. The premise is that borrowing is good because growth will more than pay it back. History suggests that never happens.

His argument is that inflation will wipe out the debt sounds very plausible until you realise that this creates wage rises, cost of living rises and interest rate rises. As ever, the socialists believe that they can defy economic realities with some miraculous magic pill..........

 

[neil999]

His argument is that inflation will wipe out the debt sounds very plausible until you realise that this creates wage rises, cost of living rises and interest rate rises. As ever, the socialists believe that they can defy economic realities with some miraculous magic pill..........

FFS...we have to find a pill as well as a money tree now?! this is getting out of hand..

 

[Number_25]

When you say it isn't working, the deficit keeps coming down and new jobs keep being created. We are doing this today.....

Cheers for replying.

I took a look at the ONS' statistics regarding unemployment, and you're correct - it is falling. However, look further and you'll see that the working-age population has risen.

Even then, I'd argue that the unemployment rate alone doesn't really encapsulate the entirety of the situation.

For example how many part-time workers would like to work full time, for a decent wage and adequate hours?

How many workers feel they're grossly underpaid, or work in poor working conditions?