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

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    growth forecasts down, consumer spending and confidence down

    short term sunny figure preclude the ****storm to come.
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    (Original post by *Hakz*)
    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.
    Economics is the study of money - Politics is of how the money affects the people.

    I hope nobody has said that before. Better trademark it quickly.
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    (Original post by AskMeAnything)
    Economics is the study of money - Politics is of how the money affects the people.

    I hope nobody has said that before. Better trademark it quickly.
    Lool how fascinating. I'm quite impressed with the way you've defined both.

    5/5 for me. Well done
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    (Original post by arabcnesbit)
    Why should we follow a Keynesian policy though? What about the neo-classical or monetarists views?
    Realistically, because it is government, and the general consensus within all of our main parties is one where the government does use active fiscal policy. I think if there was a mainstream neo-classical or monetarist consensus in the UK we would have a different role for the state. But with the state being as it is now you couldn't really set a neo-classical style policy rule, it would be like going into a butchers and setting a vegetarian policy rule.
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    (Original post by AskMeAnything)
    Economics is the study of money - Politics is of how the money affects the people.

    I hope nobody has said that before. Better trademark it quickly.
    Economics is the study of scarcity. Monetary theory, which is a branch of economics, is the study of money.
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    (Original post by arabcnesbit)
    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?
    Yes a typical private sector manager has the following contradictory views:

    - the private sector has felt some pain, its time for the public sector to feel some too
    - most public sector workers are a waste of space and wouldn't last five minutes in the private sector
    - the state employs too many public sector workers, there needs to be more private sector workers and fewer public sector workers
    - the unemployed are a bunch of hopeless dossers who wouldn't last five minutes in the private sector
    - the unemployed don't want to work, because the government pays them benefits, they should cut their benefits so they have to work
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    How are they contradictory?
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    (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?
    Teaddict, we know you're a Conservative. You don't need to keep making threads reinforcing your image.
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    (Original post by busine$$$tudent)
    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.
    Correct it is cost-push inflation. Demand pull is when you get excess demand for goods because the supply can't meet it (eg there's not enough skilled labour in the economy so firms have to bid each other up for it in wages). We don't have that now, we have surpluses of labour (high unemployment) so the inflation is not coming from the labour market and wage rises, it is from higher commodity prices. The prices of commodities are determined on the world markets, things like food and clothing count in the basket of goods which makes up the consumer prices index. Oil is probably the second biggest driver of inflation after wages, because its common to every firm, they all have some form of transportation cost which goes up when oil goes up.

    This is why the Bank of England has been holding off raising interest rates. Interest rate rises won't change commodity prices they will only depress the labour market by reducing investment in the economy and increasing unemployment, so they can act against wage inflation but not commodity prices, other than the fact that higher interest rates push the value of the pound up, so imported goods do become cheaper.
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    (Original post by Teaddict)
    How are they contradictory?
    Because they think public sector workers and unemployed aren't suited to working in the private sector.
    But they think there should be fewer public sector workers and fewer unemployed, and more in the private sector.
    So where are these new private sector workers going to come from?
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    (Original post by DH-Biker)
    Teaddict, we know you're a Conservative. You don't need to keep making threads reinforcing your image.
    Yeah I am still gonna create a thread if I want to...
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    (Original post by Teaddict)
    Yeah I am still gonna create a thread if I want to...
    (sigh)...

    Ok, well try and maintain a level head...

    The Conservatives are hardly angels when it comes to their policies and past either, so lets not get too biased.
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    (Original post by DH-Biker)
    (sigh)...

    Ok, well try and maintain a level head...

    The Conservatives are hardly angels when it comes to their policies and past either, so lets not get too biased.
    You obviously haven't been reading a lot of my comments then otherwise you would have realised that I have directed an awful lot of criticism towards the Coalition and the Conserative Party.
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    (Original post by Teaddict)
    You obviously haven't been reading a lot of my comments then otherwise you would have realised that I have directed an awful lot of criticism towards the Coalition and the Conserative Party.
    Then we're a step in the right direction.
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    Unemployment is still going up in Yorkshire :sad:
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    In fairness to Teaddict he has his own views, if he was a current Conservative MP he would be kept out of sight on the backbenches because he's frequently 'off message'. Whereas if Teveth was a Labour MP he would be straight in the Shadow Cabinet as Ed Milibands personal arselicker.
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    (Original post by MagicNMedicine)
    In fairness to Teaddict he has his own views, if he was a current Conservative MP he would be kept out of sight on the backbenches because he's frequently 'off message'. Whereas if Teveth was a Labour MP he would be straight in the Shadow Cabinet as Ed Milibands personal arselicker.
    Nice
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    How did I get neg repped for telling someone that they'd be learning something next year?
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    (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,..
    Really? I was under the impression that the recession was a global phenomenon rather than a Labour-caused one...
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    (Original post by Captain Crash)
    Really? I was under the impression that the recession was a global phenomenon rather than a Labour-caused one...
    Apart from the majority of the globe not entering recession?
 
 
 
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