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Economic Growth-Are lunatics running the economy?
Prof Eman
Posted: 18 May 2012 17:44:22(UTC)
#11

Joined: 08/04/2010(UTC)
Posts: 480

Just came across an interesting article in The Independent on line to-day. though I would share it with you.
By Owen Jones : Hatred of those on benefits is dangerously out of control
(Taking away support can only be achieved by demonising recipients as scroungers in mansions)
Helps to explain some of the shift in the Lorenz Curve.
Impacts on the the poor get poorer and the rich get richer, and the current problems some of which arise out of lack of aggregate demand.
Jeremy Bosk
Posted: 18 May 2012 19:37:00(UTC)
#12

Joined: 09/06/2010(UTC)
Posts: 1,316

Tories study old newsreels of Josef Goebbels for inspiration.
John Osborne
Posted: 19 May 2012 00:02:11(UTC)
#13

Joined: 13/07/2010(UTC)
Posts: 58

Jeremy,
Really, suggesting any of our mainstream parties would go to Goebels for policy is not a joke.
Jeremy Bosk
Posted: 19 May 2012 10:39:02(UTC)
#14

Joined: 09/06/2010(UTC)
Posts: 1,316

John

I was not joking but was unclear. I actually referred to the style, not the substance. That is the use of the big lie. Although their policies are clearly less evil, both parties are shameless liars and use rabble rousing techniques to get votes from the less intelligent.

But both main parties are morally bankrupt. The Tory extremism on austerity is creating mass unemployment, misery and squalor which will blight the lives of generations to come. The Blair administration got us into two losing wars costing hundreds of our people life and limb, hundreds of thousands of foreign lives and billions in mere money. The second Iraq war was clearly illegal and nobody can trust any politician who does not admit that. Which goes for the Tories who supported the war in Parliament as well as the New Labour vermin who were in office.
2 users thanked Jeremy Bosk for this post.
banjofred on 04/10/2012(UTC), Guest on 02/03/2014(UTC)
Prof Eman
Posted: 19 May 2012 15:53:49(UTC)
#15

Joined: 08/04/2010(UTC)
Posts: 480

In to-day's Citywire Saturday papers, there are three interesting articles relating to growth in the Guardian. Worth reading-
UK 'may never fully recover' if Greece exits Euro
(Top forecaster says Britain would face long recession as key Greek politician frames crisis as people v capitalism)
The Jamaicanisation of the eurozone
(By imposing budget cuts and austerity, the ECB is condemning countries like Greece and Spain to an economic twilight zone)
The G8 and the euro: make this one count
(Europe needs to go in for proper restructuring of its banking sector along the lines of that executed by Gordon Brown and Alistair Darling in 2008-2009)
Amazingly the suggestion is that they got some things right.
Prof Eman
Posted: 20 May 2012 19:36:30(UTC)
#16

Joined: 08/04/2010(UTC)
Posts: 480

Just to add to my Not's at #9
-Not the construction sector, on latest showing
-Not the housing sector private or public (social housing)
-Not cash strapped charities or Mr Cameron's Big Society
Anyone else would like to add to my Not's?
Jeremy Bosk
Posted: 21 May 2012 10:57:49(UTC)
#17

Joined: 09/06/2010(UTC)
Posts: 1,316

Prolonged unemployment and wages below any standard of decency for many of those with jobs lead to misery, squalor, despair and loss of self-respect.

Which all amounts to a job creation scheme for police, courts, prison and probation services, private security firms, prison builders, manufacturers of burglar alarms and security shutters, replacement glaziers...

Every cloud has a silver lining. :-(

1 user thanked Jeremy Bosk for this post.
Prof Eman on 21/05/2012(UTC)
Prof Eman
Posted: 21 May 2012 20:35:34(UTC)
#18

Joined: 08/04/2010(UTC)
Posts: 480

Jeremy
Thank you for your responses.
Your statement 'some countries' in Euroland in recession is actually seven out of seventeen, not mentioning UK. Overall growth anaemic, especially after removing Germany from the equation.
On exporting, we have not done very well, hope that will change? Will it?
As for guns v butter, as you point out guns seem to have had the upper hand, as supported by both major parties. I wonder how much of our debt can be attributed to guns? Maybe the extravagance was wars rather than living beyond our means?
As for every cloud has a silver lining, I think we need a lot of clouds, for the sun to come out after the recession.
Prof Eman
Posted: 22 May 2012 10:11:16(UTC)
#19

Joined: 08/04/2010(UTC)
Posts: 480

Has anyone seen anywhere - what the objectives of the current Afghanistan war, and the previous Blair war were, and achievements against objectives?
Has any-one seen a cost/benefit analysis of these wars?
This also impinges on the view that it does not matter who you vote for, the policies stay the same, as accentuated by the FPTP (First past the Post) system, based on a few marginals.
A complete turn off for a lot of the electorate. There are few real choices to make via the ballot box. Those who vote seem to do so on the basis of screamers like the Philpotts, as if they were the major economic consideration.
Prof Eman
Posted: 22 May 2012 22:18:15(UTC)
#20

Joined: 08/04/2010(UTC)
Posts: 480

Had an interesting discussion, wanted to share it with you.
Christine has breezed into town and given the thumbs up, except for growth.
So what is it all about.
Austerity is a brilliant medicine, except that it has side effects i.e. lack of growth and recession. And, side effects have been known to kill the patient. Greece?
So what is necessary?
Creating demand without printing money (QE) or reducing interest rates which are at a record low of 0.5% (not much of a leeway there).
You have to be kidding!
No there is something that can be done. Well look at the Lorenz curve, how it is bowing out more and more. Another way of looking at it is the figures from The Which in to-days Citywire Wonga article. 57% of households on income below £30,000, next 27% on £30,000 to £50,000, next 10% on £50,000 to £75,000, next 6%above £75,000. Hardly a normal curve, definitely skewed towards the richer end.
There is a need for some redistribution towards the lower end to boost demand and help the flagging High street.
Easier said than done.
No, there is a way. It is the FTT (Financial Transaction Tax), which could be used to withhold some of the benefit cuts. This in effect would give a redistribution of income from what is planned.
Nick Clegg keeps harping about social mobility and equal opportunity. I am surprised he has not cottoned on on the above. Especially as the argument can be couched in equality of the North/South divide. London and SE growing on the backs of The Queen's Jubilee and the Games, whilst most of the rest of the country is in recession, especially the North West, whilst having to accommodate London's reject poorest. They then have the audacity to shout about what a wonderful contribution they make to the regions.
The other aspect is investment, tax incentives for manufacturing investment would help us become more competitive, help bring about the shift from financial services to manufacturing,and lift us in manufacturing competitiveness, in which we are way behind our German competitors. After all labour competitiveness is just one aspect of the equation.
What do you think-Agree or disagree?
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