The economy - can someone explain this one please?
Discussion
Can someone please explain the following to me in simple terms?
If the cost of people's mortgages is coming down, the cost of petrol is down, the cost of food is down etc.... Why is it that the government has to borrow more money to give to people?
Surely people will be "better off" without the need for handouts?
If the cost of people's mortgages is coming down, the cost of petrol is down, the cost of food is down etc.... Why is it that the government has to borrow more money to give to people?
Surely people will be "better off" without the need for handouts?
Goochie said:
Can someone please explain the following to me in simple terms?
If the cost of people's mortgages is coming down, the cost of petrol is down, the cost of food is down etc.... Why is it that the government has to borrow more money to give to people?
Surely people will be "better off" without the need for handouts?
Because of massive unemployment, much lower taxes been paid to the taxman, etc etc If the cost of people's mortgages is coming down, the cost of petrol is down, the cost of food is down etc.... Why is it that the government has to borrow more money to give to people?
Surely people will be "better off" without the need for handouts?
The government need to make us happy again in order that we'll vote them in for another 4 years.
Or
People are stacked with personal and now immovable debt and the rate to service that debt bears no relation to the BoE interest rate. People will therefore need more money.
Or
The amount of people in mortgages that will not benefit from the reduction of rates is +70% - they need more money.
Or
The pound is so weak that our 'riches' will not buy us what we need (why you petrol is no cheaper). So you need more money.
Or
And so it goes on. Any number of reasons you can think of. However, I think people should be left... left to get used to the reality of living within their means. It's going to be a hard lesson but one worth having because we can't return to the prudent days of spending trillions of pound of money that is not ours.
Or
People are stacked with personal and now immovable debt and the rate to service that debt bears no relation to the BoE interest rate. People will therefore need more money.
Or
The amount of people in mortgages that will not benefit from the reduction of rates is +70% - they need more money.
Or
The pound is so weak that our 'riches' will not buy us what we need (why you petrol is no cheaper). So you need more money.
Or
And so it goes on. Any number of reasons you can think of. However, I think people should be left... left to get used to the reality of living within their means. It's going to be a hard lesson but one worth having because we can't return to the prudent days of spending trillions of pound of money that is not ours.
Goochie said:
Why is it that the government has to borrow more money to give to people?
Uh, because the Govt doesn't pay mortgages etc. It gets it's income from the population, and if there are more of them on benefits etc.. and less people spending money then VAT returns are lower, if people are moving less then the Moving House Tax bill comes down (somewhere around £6 Billion a year or so ago), if fuel prices come down then so does the revenue from their fuel tax.. So basically their income has dropped. Add to that the fact that when revenue streams were good as the economy was fine they were not saving money but p***ng it up the wall, including selling off assets, so now they need to borrow to pay for those unemployed and on benefits to vote for them.Bing o said:
If we hit 3 million unemployed, plus 2.7 mil on incapacity benefits, about 1 in 5 of the adult population will not be working - that is not good for the country
Especially since labour cooked the books to get unemployment figures down. What's the true number of unemployed? It's out there, somewhere, living with the true number of illegal immigrants.We got into this mess to start with by borrowing too much. So Brown is going to try and fix it by borrowing more, and giving it to us to spend. If we spend it we'll probably spend it on manufactured goods from the Far East, so the net flow of money will continue to go from west to east. And then somehow we'll have to pay back the borrowed money, and the interest on it, which will come in the form of higher taxation.
If you bring what Brown is doing back to the level of the real world, he's maxed out all his credit cards and is applying for more, with no idea how he's going to pay them off.
If you bring what Brown is doing back to the level of the real world, he's maxed out all his credit cards and is applying for more, with no idea how he's going to pay them off.
Simpo Two said:
We got into this mess to start with by borrowing too much. So Brown is going to try and fix it by borrowing more, and giving it to us to spend. If we spend it we'll probably spend it on manufactured goods from the Far East, so the net flow of money will continue to go from west to east. And then somehow we'll have to pay back the borrowed money, and the interest on it, which will come in the form of higher taxation.
If you bring what Brown is doing back to the level of the real world, he's maxed out all his credit cards and is applying for more, with no idea how he's going to pay them off.
He's also promised "the wife" he's been paying into a pension, when in fact he hasn't set any money aside at all...public sector pensions are both absurdly generous compared to everyone else, and completely unfunded.If you bring what Brown is doing back to the level of the real world, he's maxed out all his credit cards and is applying for more, with no idea how he's going to pay them off.
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