[Austerity Fail] Spending Cuts Push UK Into Recession

Clearly the working class was not willing to make enough sacrifices for their wealthy benefactors. Those lazy people should work harder for less pay.

 

There is no question spending have to be cut, but to cut it right now would be wrong. If things get better, the next president have to make some hard choice on what and how much to cut. You don't tell a sick man you have to go out and work hard, you try to get him well and feed him first. Only after he recovers do you tell him to go out and work hard.

 

The funny thing is the crew that will come to the defense of the wealthy..... aren't wealthy.

They should cut education so the youth can be easily indoctrinated too.

 

Sam, do you argue for liberal tax and spend policies?

 

As opposed to conservative spend and tax cut policies?

 

I hate to point out the obvious, but who argues that spending cuts will immediately increase GDP despite all the other things that could be going on in an economy? Apparently 2 quarters is the time limit to judge the result of all fiscal policy. Someone better tell the economy that 6 months is the long term.

 

That's what disturbs me the most. It's never that there are people hawking policies beneficial to their benefactors -- those folks will always exist. It's the fact that they have so many followers that disturb me; that so many people actually believe the filth they spew. These are the people that vote against their own interests and are the detriment to us all.

It would all be solved with better education, something else they continue to try and cut. People are so stupid now that they think education is bad (those liberal colleges!).

 

Why did you defend borrow and spend policies from 2001-2008? People like you only care about the deficit when it's politically convenient.

 

Why is it always one or the other?

How about some revenue increases with some spending cuts, but not excessive on either side?

 

There are plenty of middle class that are willing to defend the rich who are educated, like most of the far right leaning posters on this bbs.

 

The funniest thing is that Britain is also printing money like a boss, which will probably lead to stagflation (if it hasn't already.).

 

Well of course - this is like saying the sky is blue.

 

I think you are confusing "educated" with "character played on clutchfans" but I digress.

 

We're talking about austerity causing a recession. Please stick to the topic, and start a different thread if you want to talk about that.

 

I'm not intimately familiar with what the UK politics, but I don't see stagflation happening without a massive supply shock of some kind...particularly since I believe they're just doing lots of QE (more bank reserves) as opposed to straight-up helicopter drops (more cash in circulation).

 

http://www.guardian.co.uk/business/2012/apr/18/britain-inflation-high-bank-england

I think the BoE was running one of the most accommodating programs out there with massive rounds of QE and cash drops. It helps mind you that the British government, if memory serves, is still a hefty part owner of RBS and Lloyds, and maybe some other banks out there.

Anyways, the Anglo-Saxons have always had a huge preoccupation with inflation, but when the CB openly admits inflation is above trend, I think that's a pretty close call to stagflation. It's been declining lately, but I can see plenty of supply shocks as well. I'd keep my eye out on oil as a quick example, if Middle East tensions rise again.

 

Multiple GOP members have said the way they will create jobs is to cut government spending.

 

Touche...shows you how much I know.

If the Brits had been running massive deficits before Cameron and undergoing rounds upon rounds of QE, it's no surprise the money supply has exceeded productive capacity. I also see plenty of potential supply shocks coming as well, particularly in oil. If oil prices continue to rise, we'll see momentary increased inflation worldwide before we all plunge back into a recession again.

 

Yup... exactly, and people are not talking about this enough.