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Osborne's austerity hasn't worked, so he proposes more austerity. watch

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    http://www.bbc.co.uk/news/uk-politics-35672158
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    It's because he spent too much in the Autumn Statement.
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    (Original post by LordMallard)
    It's because he spent too much in the Autumn Statement.
    no because there is no proof that austerity works mate
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    (Original post by mangala)
    no because there is no proof that austerity works mate
    Economics is a bit of a pseudoscience. Osborne was given 27 billion in the Autumn Statement and spent all of it. I do believe that he should increase spending in some areas (building council houses to reduce rents would solve a lot of problems), but on a whole I agree with deficit reduction.
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    the title implies that doing that is ridiculous with no justification.

    but, like, say i had one potato and it didn't sate my appetite, wouldn't it be sensible to have more food afterwards? Doing more of something because a small quantity of it didn't work isn't always a bad thing.
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    (Original post by LordMallard)
    Economics is a bit of a pseudoscience. Osborne was given 27 billion in the Autumn Statement and spent all of it. I do believe that he should increase spending in some areas (building council houses to reduce rents would solve a lot of problems), but on a whole I agree with deficit reduction.
    he wasn't "given" 27b, they decided to assess the income in a different way and thought it said they had made an extra 27b. they hadn't
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    (Original post by samharrison)
    the title implies that doing that is ridiculous with no justification.

    but, like, say i had one potato and it didn't sate my appetite, wouldn't it be sensible to have more food afterwards? Doing more of something because a small quantity of it didn't work isn't always a bad thing.

    no, but if you hated potatoes and you kept eating them expecting them to get better, it would not make sense

    (potatoes being austerity and hate being it not working, in case the spud analogy has extended too far)

    of course i agree we should reduce the deficit, but the fact is osborne is not bothered about doing that or else he wouldn't be so austere
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    (Original post by LordMallard)
    It's because he spent too much in the Autumn Statement.
    No its not its because of central bank manipulation leading to a inflated stock market that is on life support. Since April 2015 we have been in recession.

    What has really pushed the whole western economy over the head isn't China but a more complex problem.

    Thing is the base currency of the USD is dwindling and this is preventing the Federal Reserve in the ability to print more money though quantitative easing. The same thing is causing diminishing returns on any QE that the Bank of Japan do and the European Central Bank.

    All this cheap money has been used over the last 15 years to buy cheap Chinese rubbish. However I am afraid the currency war is going to come to a end soon and you won't see it coming until its too late.

    Basically we are 1 min until doomsday for the central bankers. The only option they have left now is QE infinity which causes hyper inflation and world wide civil unrest due to austerity measures.

    So what is going to happen is this. In 18 days time George Osborne is going to announce some really devastating austerity cuts. They are going to be nasty and they are going to hit the poor the hardest.

    And as for students on TSR? Well lol your never be able to pay your debts back because when the economy crashes there will be no one to save it so expect a good 10-20 years of unemployment in the UK.

    There is a reason I am a part time student without £50,000 of debt to pay back.

    But ...... It doesn't matter how wealthy or how debt free we are ...... we are all screwed!
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    Quick question...What is austerity?
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    (Original post by samharrison)
    the title implies that doing that is ridiculous with no justification.

    but, like, say i had one potato and it didn't sate my appetite, wouldn't it be sensible to have more food afterwards? Doing more of something because a small quantity of it didn't work isn't always a bad thing.
    But it hasn't been a small quantity.

    If you've eaten a whole sack of potatoes and you're still hungry, you probably need to see a doctor.
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    (Original post by illegaltobepoor)
    No its not its because of central bank manipulation leading to a inflated stock market that is on life support. Since April 2015 we have been in recession.

    What has really pushed the whole western economy over the head isn't China but a more complex problem.

    Thing is the base currency of the USD is dwindling and this is preventing the Federal Reserve in the ability to print more money though quantitative easing. The same thing is causing diminishing returns on any QE that the Bank of Japan do and the European Central Bank.

    All this cheap money has been used over the last 15 years to buy cheap Chinese rubbish. However I am afraid the currency war is going to come to a end soon and you won't see it coming until its too late.

    Basically we are 1 min until doomsday for the central bankers. The only option they have left now is QE infinity which causes hyper inflation and world wide civil unrest due to austerity measures.

    So what is going to happen is this. In 18 days time George Osborne is going to announce some really devastating austerity cuts. They are going to be nasty and they are going to hit the poor the hardest.

    And as for students on TSR? Well lol your never be able to pay your debts back because when the economy crashes there will be no one to save it so expect a good 10-20 years of unemployment in the UK.

    There is a reason I am a part time student without £50,000 of debt to pay back.

    But ...... It doesn't matter how wealthy or how debt free we are ...... we are all screwed!
    I would like to point out that I am against QE, so I won't justify the actions of central banks. As some people point out, it transfers money to the rich and pushes up house prices.
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    (Original post by homeland.lsw)
    Quick question...What is austerity?
    It's when you stop spending like a gangsta rapper with a record deal.
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    (Original post by homeland.lsw)
    Quick question...What is austerity?
    austerity is reducing the amount of money that a government spends in order to reduce the "deficit" which is the how much MORE we're spending than what we are earning in tax.

    aka, if we earned £1 in tax but spent £1.20 a year, we would be in a 20p deficit.

    once the deficit has been reduced completely, you can then go in to a "surplus" where you earn more money in tax than you spend.

    aka, if we earned £1 in tax but spent 90p a year, we would be in a 10p surplus.

    however, reducing public spending is actually damaging to the growth of the economy (one of the reasons why ours is recovering so much slower since 2008 than other countries) because poorer people become much poorer and therefore buy less things. this is damaging to business and to the government too, because they raise less money in VAT.
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    (Original post by illegaltobepoor)
    No its not its because of central bank manipulation leading to a inflated stock market that is on life support. Since April 2015 we have been in recession.

    What has really pushed the whole western economy over the head isn't China but a more complex problem.

    Thing is the base currency of the USD is dwindling and this is preventing the Federal Reserve in the ability to print more money though quantitative easing. The same thing is causing diminishing returns on any QE that the Bank of Japan do and the European Central Bank.

    All this cheap money has been used over the last 15 years to buy cheap Chinese rubbish. However I am afraid the currency war is going to come to a end soon and you won't see it coming until its too late.

    Basically we are 1 min until doomsday for the central bankers. The only option they have left now is QE infinity which causes hyper inflation and world wide civil unrest due to austerity measures.

    So what is going to happen is this. In 18 days time George Osborne is going to announce some really devastating austerity cuts. They are going to be nasty and they are going to hit the poor the hardest.

    And as for students on TSR? Well lol your never be able to pay your debts back because when the economy crashes there will be no one to save it so expect a good 10-20 years of unemployment in the UK.

    There is a reason I am a part time student without £50,000 of debt to pay back.

    But ...... It doesn't matter how wealthy or how debt free we are ...... we are all screwed!
    im glad you agree with me mate kill the rich is the only way
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    (Original post by mangala)
    im glad you agree with me mate kill the rich is the only way
    I thought you where sensible till I read this
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    Austerity doesn't work. All Osborne is doing is shrinking the economy and its scope for recovery while national debt - the black hole - has risen to 1.6 trillion from 1.4 just a year ago. Osborne should be sacked. He's useless and only there because he's one of the Bullingdon Boys - those who burn 50 quid notes under the noses of the homeless to prove their worth. Disgusting individuals.
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    (Original post by kieran12321LFC)
    I thought you where sensible till I read this
    they have killed many innocent people and are above the law, kill the *******s imo


    (by the rich i mean the elite, not just rich people)
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    Austerity has worked. We are the fastest growing economy in Europe and the developed world. Countries who opposed austerity like France, Spain and Greece had the worst growth...in fact negative growth

    We are expected to overtake Germany as the 4th largest economy in the near future
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    (Original post by mangala)
    they have killed many innocent people and are above the law, kill the *******s imo


    (by the rich i mean the elite, not just rich people)
    In real terms it's completely unfeasible to just kill all the rich people.Then we'd end up like a sub-Saharan African country
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    (Original post by mangala)
    austerity is reducing the amount of money that a government spends in order to reduce the "deficit" which is the how much MORE we're spending than what we are earning in tax.

    aka, if we earned £1 in tax but spent £1.20 a year, we would be in a 20p deficit.

    once the deficit has been reduced completely, you can then go in to a "surplus" where you earn more money in tax than you spend.

    aka, if we earned £1 in tax but spent 90p a year, we would be in a 10p surplus.

    however, reducing public spending is actually damaging to the growth of the economy (one of the reasons why ours is recovering so much slower since 2008 than other countries) because poorer people become much poorer and therefore buy less things. this is damaging to business and to the government too, because they raise less money in VAT.
    Oh I see, but how is the government spending more than it can? Is this where things like Trident etc come into play or not?
 
 
 
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