Hey there! Sign in to join this conversationNew here? Join for free

Inflation down, unemployment down... What will Labour do now? Watch

    Offline

    19
    ReputationRep:
    (Original post by arabcnesbit)
    Isn't all the talk of the threat of a double dip recession though?
    It wouldn't be Labour's doing if there was though.
    Offline

    1
    ReputationRep:
    (Original post by Quady)
    It wouldn't be Labour's doing if there was though.
    Never said it would. Although.....................do you really buy the whole "We're cutting to fast spiel"?
    Offline

    2
    ReputationRep:
    (Original post by *Hakz*)
    I don't know what kind of world I've been living in. I honestly didn't know that we've emerged from the recession as of NOW. I would say that is a great achievement for the Labour party.

    Thanks for the link though. UP Labour !Yay!
    You misunderstand. Being in recession is just negative growth - the economy needed such time to recover and would have done so under any fiscal policies, in my view. We are still in the midst of a financial crisis thanks to our budget deficit and record borrowing.
    Offline

    15
    ReputationRep:
    (Original post by arabcnesbit)
    Isn't all the talk of the threat of a double dip recession though?
    I'm confused mate. Care to elaborate?
    Offline

    19
    ReputationRep:
    (Original post by arabcnesbit)
    Never said it would. Although.....................do you really buy the whole "We're cutting to fast spiel"?
    No, but thats what the poster was going on about.

    No not really, it certainly doesn't feel like it yet, I would expect Q1 to be positive, its in about a year when I expect to see if the cuts will hurt or not.
    Offline

    19
    ReputationRep:
    (Original post by AskMeAnything)
    You misunderstand. Being in recession is just negative growth - the economy needed such time to recover and would have done so under any fiscal policies, in my view. We are still in the midst of a financial crisis thanks to our budget deficit and record borrowing.
    Its arguable that if the US backed Lehman and underwrote all US bank losses that we'd have gone into recession. But thats speculation...
    Offline

    15
    ReputationRep:
    (Original post by Quady)
    Labour got us into the recession you might also remember?

    Messing up then stopping the mess getting worse is still overall a bad thing,..
    I give you the benefit of the doubt.







    YOU WIN :pierre:
    Offline

    19
    ReputationRep:
    (Original post by Quady)
    Turkeys voting for christmas springs to mind

    I just can't see the Govt giving such executive power away. Of course it could work, but the Treasury would be a bit of a messy place when tax take falls 10% within a year (as happened) and public spending needs winding down to keep within the 3% (or whatever) limit.

    Theres a definite framework around your idea though.
    That was why I said the cap would be a flexible one which related to growth.

    Say the natural rate of output was 2.5%, you could say if growth was on target or above target you had to run a balanced budget (or allow a bit of flexibility eg a 0.5% deficit).

    Then if growth was 1.5%-2.5% you could have a deficit cap of 3%
    If growth was 0-1.5% you could have a deficit cap of 6%
    If growth was below 0% you didn't have a cap.

    What this would mean is the budget had to balance in the good times. You could use deficits only when growth was below natural rate.
    Offline

    1
    ReputationRep:
    (Original post by *Hakz*)
    I'm confused mate. Care to elaborate?
    I mean we won't know how the tories have done until the effect their cuts have had has been measured, and that will take a while for us to find out.


    (Original post by Quady)
    No, but thats what the poster was going on about.

    No not really, it certainly doesn't feel like it yet, I would expect Q1 to be positive, its in about a year when I expect to see if the cuts will hurt or not.
    Yeah, the question is can the private sector create enough jobs to absorb the losses from the public sector and maybe more importantly, does the private sector see any value in these ex-public employees?
    Offline

    19
    ReputationRep:
    (Original post by AskMeAnything)
    You misunderstand. Being in recession is just negative growth - the economy needed such time to recover and would have done so under any fiscal policies, in my view. We are still in the midst of a financial crisis thanks to our budget deficit and record borrowing.
    This is what people hoped in the 1930s and it turned a global recession into a depression.
    Offline

    14
    ReputationRep:
    (Original post by Teaddict)
    Well guys, Since the disappointing growth figures, increasing inflation as well as increasing unemployment, Labour have jumped on this as a vindication of their view that the coalitions cuts are damaging the economy.

    But love and behold, inflation has come down and unemployment has fallen. So, is this a vindication of the coalitions policies? Will Labour now look a bit out of place claiming the coalitions policies are damaging, or will they engage in some spin?
    We'll simply point out that under our plans for the economy, there wouldn't have been any slide backwards, and the economy would be doing even better than it is now, since it would be building on a stronger position.
    Offline

    0
    ReputationRep:
    Inflation down, unemployment down... What will Labour do now?
    This wasn't meant to be a serious thread, if it was, we can talk about how inflation and unemployment would have risen regardless of who was elected.
    Ah satire.
    Offline

    1
    ReputationRep:
    (Original post by MagicNMedicine)
    That was why I said the cap would be a flexible one which related to growth.

    Say the natural rate of output was 2.5%, you could say if growth was on target or above target you had to run a balanced budget (or allow a bit of flexibility eg a 0.5% deficit).

    Then if growth was 1.5%-2.5% you could have a deficit cap of 3%
    If growth was 0-1.5% you could have a deficit cap of 6%
    If growth was below 0% you didn't have a cap.

    What this would mean is the budget had to balance in the good times. You could use deficits only when growth was below natural rate.
    Why should we follow a Keynesian policy though? What about the neo-classical or monetarists views?
    Offline

    2
    ReputationRep:
    http://www.ifaonline.co.uk/professio...ng-losing-plot

    interesting read
    Offline

    15
    ReputationRep:
    [QUOTE=arabcnesbit;30855553]I mean we won't know how the tories have done until the effect their cuts have had has been measured, and that will take a while for us to find out.

    Yes I agree and it will take a little while to witness the full benefit of their recent policies.
    Offline

    15
    ReputationRep:
    (Original post by AskMeAnything)
    You misunderstand. Being in recession is just negative growth - the economy needed such time to recover and would have done so under any fiscal policies, in my view. We are still in the midst of a financial crisis thanks to our budget deficit and record borrowing.
    This was what I've been thinking all these while.

    Thanks for the clarification though.

    Are you, by any chance, doing/will be doing Economics?
    Offline

    2
    ReputationRep:
    (Original post by *Hakz*)
    This was what I've been thinking all these while.

    Thanks for the clarification though.

    Are you, by any chance, doing/will be doing Economics?
    Politics, but you don't need to understand intricacies to get a broad view on things.
    Offline

    0
    ReputationRep:
    I don't think there is a topic on this forum about inflation but it interests me. I'm surprised inflation is twice the level we want it to be since there is not as much aggregate demand as a result of the economic downturn. However, commodities are pushing prices up (raw goods, war, burgeoning populations, oil prices rising), but a lot of staff at college are getting early voluntary retirement or working 4/5 days so they lose 20% of their wage). Since demand for non basic items are lowering is that cost-push inflation or the other one?

    Hope someone can go further into detail.
    Offline

    15
    ReputationRep:
    (Original post by AskMeAnything)
    Politics, but you don't need to understand intricacies to get a broad view on things.
    I know but I just saw the use of some economic policies and principles that you have included in your comment. Politics also provides that anyway.
    Offline

    16
    ReputationRep:
    (Original post by dzeh)
    Dey took our jooobs!
 
 
 
  • See more of what you like on The Student Room

    You can personalise what you see on TSR. Tell us a little about yourself to get started.

  • Poll
    Has a teacher ever helped you cheat?
    Useful resources

    Groups associated with this forum:

    View associated groups
  • See more of what you like on The Student Room

    You can personalise what you see on TSR. Tell us a little about yourself to get started.

  • The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

    Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

    Write a reply...
    Reply
    Hide
    Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.