Theoretically in a real boom period government spending could drive up wages as people go to work in the less productive state components of the economy at the expense of the more productive private sector. It's certainly feasible that push it below one, below zero is more theoretical. It was just an aside and plainly not true at the moment.
Inflation in itself does lower standard of living though. Inflation along with wage inflation doesn't and would be the single quickest fix to the current problem although morally bankrupt if it was attempted. And so far the government have done a great job at inflation and devaluing the pound but not wage inflation.
I'm still wondering why 12% works and 8% doesn't as is currently being shown.
I probably won't reply again due to being away for the next two weeks. Sorry.
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Why are we preserving foreign aid when we're so in debt? watch
Last edited by mucgoo; 29-03-2013 at 21:19.
- 29-03-2013 21:18
- Thread Starter
- 30-03-2013 13:01
This might sound like a really stupid question but how did we get into debt in the first place?
From reading some of these posts it sounds like countries have to be in debt so why is it that they end up so?
Posted from TSR Mobile
(Original post by Harry Callahan)
- 31-03-2013 22:16
We should cut all overseas aid. For goodness' sake, we're giving India money when they have admitted they don't need it and they have a space program.
Concentrate on improving our own public services.
How on earth did you get banned for saying stuff like this lol? !
- 31-03-2013 22:25
It is an international commitment that dates back to the 1970s
- 01-04-2013 01:51
Ideally you should try and reduce your debt during periods of prosperity and raise it when in a slump. There is no upper limit to the amount of debt, as long as you can service the interest, but you leave yourself more prone to external shocks ie. If something bad happens you suddenly find yourself in a world of s**t.
Posted from TSR Mobile
- 01-04-2013 01:55
I say we cut foreign aid altogether until we can afford it.
People seem to think that if we cut foreign aid that it's gone forever. It's not... We can start giving it, and even give more, when our economy is sorted out.
- 01-04-2013 02:00
People tend to forget that people also donate money to foreign charities, which bumps up that overall foreign aid number, that is only the governments contribution.
I mean look at comic relief sending rich people to Africa to cry on camera and beg normal people for money
Last edited by Foghorn Leghorn; 01-04-2013 at 02:08.
- 01-04-2013 02:06