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    As a Labour Party supporter, I disagree with the cuts that the Coalition Government are currently making. They are going too far, too fast. Their policy of contractionary fiscal policy creates a substantial risk of the UK slipping back into recession, which means consumer confidence will begin to fall even further, as people will be more likely to save, which leads to less money being pumped into the economy, ie. a fall in aggregate demand.

    With current levels of unemployment very high, job losses will be the consequence of these harsh, unnecessary cuts through the Coalition Government's contractionary fiscal policy.

    On the other hand, Labour's policy of expansionary fiscal policy means that although the budget deficit will increase, a significant number of jobs will be created, aggregate demand will increase, which means an increase in consumer confidence, therefore household income will increase, which may result in taxpayers moving into a higher tax band, which leads to an increase in Government revenue from taxation.

    If we carry on with the current rate of cuts, we will reverse to the 1980's, making the poorest poorer, and the richest richer, same old Tories! Cuts need to be made at a steady pace, with the budget deficit dealt with once the economy is full steam ahead.

    All views, opinions and thoughts are more than welcome
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    Disagree. Definitely disagree.

    “I warn you not to be ordinary, I warn you not to be young, I warn you not to fall ill, and I warn you not to grow old.” - Neil Kinnock
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    High fives to you Paddy__Power!!! ;D
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    (Original post by C92119F)
    As a Labour Party supporter, I disagree with the cuts that the Coalition Government are currently making. They are going too far, too fast. Their policy of contractionary fiscal policy creates a substantial risk of the UK slipping back into recession, which means consumer confidence will begin to fall even further, as people will be more likely to save, which leads to less money being pumped into the economy, ie. a fall in aggregate demand.

    With current levels of unemployment very high, job losses will be the consequence of these harsh, unnecessary cuts through the Coalition Government's contractionary fiscal policy.

    On the other hand, Labour's policy of expansionary fiscal policy means that although the budget deficit will increase, a significant number of jobs will be created, aggregate demand will increase, which means an increase in consumer confidence, therefore household income will increase, which may result in taxpayers moving into a higher tax band, which leads to an increase in Government revenue from taxation.

    If we carry on with the current rate of cuts, we will reverse to the 1980's, making the poorest poorer, and the richest richer, same old Tories! Cuts need to be made at a steady pace, with the budget deficit dealt with once the economy is full steam ahead.

    All views, opinions and thoughts are more than welcome

    Got a link to Labour's economic plan?
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    Agree with cuts, however, I would not have ring fenced NHS or International Development. Another thing, I would have ring fenced Home Office and Defence.
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    im pro-cuts.
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    Definately pro-cuts, even though the wife lost her job, she still agrees with the cuts, it's for the good of the country as a whole
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    Thank you for your views everyone who's posted so far, although I'm on the disagree side, those who are pro cuts are perfectly entitled to your opinions

    Thank you for your views

    I'm an Economics student and we're studying Fiscal Policy at the moment so I thought this topic would be relevant to have a mature debate to express one's views

    @Aj12: I agree that Labour should have published their Economic policies by now, however, I thought that Ed Balls made a good point though that Labour shouldn't have to publish a full manifesto whilst in opposition since the economy come the next General Election will be in an entirely different state than today, therefore they only need to make brief points regarding their economic policy. In the Miliband/Balls conference the other day they outlined what they would do if they were in power. They wish to halve the budget deficit over a period of 4 years, and make cuts at a steady pace, their policy is to pump money into the economy to boost aggregate demand in order to increase consumer confidence which in turn creates a multiplier effect, leading to the creation of jobs. More Jobs = More Tax Revenue + Less expenditure on benefits such as JSA etc, reducing the deficit.
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    Pro cuts for me to because if you invest in the public sector like labour would it means your getting growth based on debt which doesnt work then we'll eventually have the same problem again and run out of other peoples money to spend. The only way you can have growth is by private investment.
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    (Original post by The_Great_One)
    Pro cuts for me to because if you invest in the public sector like labour would it means your getting growth based on debt which doesnt work then we'll eventually have the same problem again and run out of other peoples money to spend. The only way you can have growth is by private investment.
    I do agree that the Private Sector is more efficient, no question, but the privatisation of Public Sector firms carries a large risk. Private firms will be able to charge whatever price they want so consumer confidence will therefore fall as they may be priced out of the market.
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    (Original post by meenu89)
    Agree with cuts, however, I would not have ring fenced NHS or International Development. Another thing, I would have ring fenced Home Office and Defence.
    Pro-Cut, this pretty much is where my views fall.
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    (Original post by C92119F)
    High fives to you Paddy__Power!!! ;D
    :awesome:
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    (Original post by C92119F)
    As a Labour Party supporter, I disagree with the cuts that the Coalition Government are currently making. They are going too far, too fast. Their policy of contractionary fiscal policy creates a substantial risk of the UK slipping back into recession, which means consumer confidence will begin to fall even further, as people will be more likely to save, which leads to less money being pumped into the economy, ie. a fall in aggregate demand.

    With current levels of unemployment very high, job losses will be the consequence of these harsh, unnecessary cuts through the Coalition Government's contractionary fiscal policy.

    On the other hand, Labour's policy of expansionary fiscal policy means that although the budget deficit will increase, a significant number of jobs will be created, aggregate demand will increase, which means an increase in consumer confidence, therefore household income will increase, which may result in taxpayers moving into a higher tax band, which leads to an increase in Government revenue from taxation.

    If we carry on with the current rate of cuts, we will reverse to the 1980's, making the poorest poorer, and the richest richer, same old Tories! Cuts need to be made at a steady pace, with the budget deficit dealt with once the economy is full steam ahead.

    All views, opinions and thoughts are more than welcome
    first of all, labour's official policy is not fiscally expansionary. the labour party simply wants to reduce the deficit but at a slower pace; that is still a contractionary fiscal policy.

    Secondly, your naive belief that the British government is in any position to make a fiscal stimulus of aggregate demand is nonsense; your view is just a bad case of AS level economics. you're forgetting that the UK was about to lose its AAA credit rating last year, the emergency budget removed that problem because of the promised spending cuts. after all that you're advocating another fiscal stimulus...WOW, just, WOW. either you're troll or you're astonishingly naive.
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    I'm not against the cuts per se. I'm just against the reforms that are going to cost as much to implement as they save and are done for ideological rather than financial reasons.
    Cuts are more or less inevitable, even if I don't necessarily agree with what, when, where, how and why.
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    Disagree. It makes me cringe that the government are cutting funding for the British people, and yet somehow fund the military to rain clusters of bombs over foreign people!
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    to be honest as much as everyone dislikes them I don't see any other political parties putting forward a decent proposal

    this country literally has no money and is in huge amounts of debt

    I'm against the increase in Uni fees though, on the whole I do realise that University fees DO have to increase, but trebling them within the space of a year is far too much
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    pro-cuts

    although would have ring-fenced or even increased defence spending

    completely raped the "international aid" fund for all counties but the most needy (we currently pay india, china, russia etc.)
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    (Original post by R£SP£CT)
    Disagree. It makes me cringe that the government are cutting funding for the British people, and yet somehow fund the military to rain clusters of bombs over foreign people!
    do you live with your head under the ground?....

    the military have been royally shafted by the SDSR....
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    (Original post by ElfManiac)
    I'm not against the cuts per se. I'm just against the reforms that are going to cost as much to implement as they save and are done for ideological rather than financial reasons.
    Cuts are more or less inevitable, even if I don't necessarily agree with what, when, where, how and why.
    1) which reforms are you referring too?

    2) what evidence do you have that this is for ideological reasons?
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    (Original post by JIRAIYA-ERO-SENNIN)
    first of all, labour's official policy is not fiscally expansionary. the labour party simply wants to reduce the deficit but at a slower pace; that is still a contractionary fiscal policy.

    Secondly, your naive belief that the British government is in any position to make a fiscal stimulus of aggregate demand is nonsense; your view is just a bad case of AS level economics. you're forgetting that the UK was about to lose its AAA credit rating last year, the emergency budget removed that problem because of the promised spending cuts. after all that you're advocating another fiscal stimulus...WOW, just, WOW. either you're troll or you're astonishingly naive.
    Thanks for your criticism. I failed my AS year through not revising thoroughly. I'm not proud of that. This year my intention is to prepare thoroughly, and thought this would be a creative way to revise fiscal policies and the like. I obviously need to look into the topic further, but just wanted to hear thoughts and opinions of other members, and I'm simply using my source from notes from class as well as quoting Labour MP's. I do not however appreciate being called troll, that is simply not the case. In case you didn't notice, I said any thoughts, views or opinions are welcome :confused: I hope you can understand that, I hope you now know it was most definitely NOT my intention to provoke any argument of any kind. You seem rather smart, hence why I appreciate your comment.
 
 
 
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