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Does the UK deficit need to be cut? Watch

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    No, (well yes, but not right now) the government should be focusing on economic growth, currently all the major components of aggregate demand are falling and the government should step up to stimulate the economy.

    If we grow the percentage of debt to GDP will fall, however if we cut back while the actual value of the debt may fall the economy will probably shrink (if done too excessively) and the percentage of debt to GDP could actually increase.

    The government should cut the deficit in a few years, when the private sector will make up the slack from the cuts. Now is not the time.
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    (Original post by Rakas21)
    If a benefit costs more to means test then it should be merged with another, one of the failures of our benefits system is that we have so many different types.

    Which is what the government is doing yet is criticised for. I'm convinced that a lot of the time labour just disagree fir political point scoring. I'll bet they don't change anything.
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    (Original post by dean01234)
    No, (well yes, but not right now) the government should be focusing on economic growth, currently all the major components of aggregate demand are falling and the government should step up to stimulate the economy.

    If we grow the percentage of debt to GDP will fall, however if we cut back while the actual value of the debt may fall the economy will probably shrink (if done too excessively) and the percentage of debt to GDP could actually increase.

    The government should cut the deficit in a few years, when the private sector will make up the slack from the cuts. Now is not the time.
    Classic Keynesian economics. Except we didn't cut it times of growth. We spent.

    look at the you tube clip of david starkey. He explains what we did on the 30's that didn't theoretically work, but actually did work.

    to summarise. Slashed welfare significantly more than we're doing now. Built lots of housing.
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    (Original post by MatureStudent36)
    Which is what the government is doing yet is criticised for. I'm convinced that a lot of the time labour just disagree fir political point scoring. I'll bet they don't change anything.
    Sadly they've not gone nearly far enough and like any government are afraid to target rich pensioners.

    Yes, most of the time they actually abstain.
 
 
 
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