Open thread: ‘Spending Review’

Mick is unable to give the coverage this deserves; discuss, add links, comments etc on the ‘Coalition’ review of finances below.

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  • Halfer

    Absolutely appalling. Ideologically driven madness that’s going to cost us all in social harm for many years to come.

  • White Horse

    Halfer

    That ideology would be the Nation state and the national interest, an ideology which appeals greatly to the shallow and those with low empathy for others and which is their version of right wing Christianity in many instances, particularly in our sphere.

  • Johnny Boy

    I never thought I’d ever defend a Tory government but I have yet to hear any viable alternatives.

  • slug

    The level of borrowing meant that spending had to be cut, or our ability to borrow at reasonable rates on the markets would have been jeopardised. You cannot borrow £1 for every £4 you spend indefinitely.

  • Halfer

    Within the UK economy there is more than enough wealth to sustain substantial and stable growth. There are still wildly generous wages and bonuses in the financial sector.

    Yet this dogma “there is no alternative” is nonsense. There are still vastly wealthy people in the uk. Some of them are those who drafted this budget.

    This type spending review is not new. It was done by Reagan, Thatcher, Pinochet, the Argentine generals, anyone whom would suck in Friedmans fetishist fixation with completely free markets.

    Expect 80’s style crime waves, drug use, wealth gap acceleration and a new burgeoning wealthy elite.

  • GoldenFleece

    The levels of public expendture are the same as in 2006. I’m not buying the scare tactics made by some.

  • Greenflag

    ‘our ability to borrow at reasonable rates on the markets would have been jeopardised.’

    That’s because the UK doesn’t have the US Dollar or Euro or Yen for it’s currency 😉 Sterling is wide open for currency speculation just as it was back in John Major times -which is why Mr George ‘Hoover ‘ Osborne was forced to do what he believes himself forced to do .

    The UK should join up with the Euro Zone and stop pretending it’s the 19th or even 20th centuries 😉

  • Johnny Boy

    What is your alternative Halfer?

  • GoldenFleece

    Actually according to IFS numbers, the richest 2% are hit hardest, then the poor, the middle classes are hit the least.

  • Imagine the Public Sector having to live within it’s means. Whatever next? To the barricades, comrades?
    Or how about a little fiscal probity and strategic intelligence. Just saying…

  • drumlins rock

    that would have sunk the economy completely, only by having the currency fluctuate were we flexible enought to ride the worst out.

  • Halfer

    So I offer a more than likely scenario of social strain and disintegration based on three modern economic experiences and you ask me what is my alternative?

    An economy that distributes wealth in order to create the greater social harmony and stability. How’s that for starters.

    Why arnt you questioning why there is a deficit? Who it is we are in debt to. Why are we paying this debt by taking from the welfare state and not from the wealthy? Why not from the profits of Nationalised banks?

    Fiscal probity and strategic intelligence can also work upwards and not always downwards.

  • Johnny Boy

    Halfer
    “An economy that distributes wealth in order to create the greater social harmony and stability. How’s that for starters”

    That isn’t an alternative, it’s an Ideal. What steps would you take to make it happen?

    Until I hear an alternative practical approach to the public finances are in I am largely with the government on this.

  • Johnny Boy

    ^^
    Until I hear an alternative practical approach to the situation the public finances are in I am largely with the government on this.

    (thinking words and not typing them!)

  • Johnny Boy

    More tax on the banks? How do you make them keep their businessed in the country?
    Ditto the wealthy and their businesses.

  • Halfer

    Well yes it is. Build the economy through Keynesian intervention.

  • Halfer

    A quite a few wealthy people have already kept the uk. Some of them are benefactors of the Tory party. The banks will not leave the country. If they do they leave market opportunities for other banks. Besides, the capital in the banks is owned by the uk public.

  • Johnny Boy

    Keynesian intervention has got us through the worst of it (up to now) but it isn’t going to deal with the structural deficit…

    If there is a harsh tax environment corporations will move their operations else ware, in addition British companies will be less competitive in the export market which is essential to any recovery.

  • Alias

    Keynesian intervention is borrowing by elected idiots that paid for by the idiots that elected them after they fling them out of office.

  • Seymour Major

    One of the problems that most socialists seem to have is that they do not understand the importance of business confidence. They seem to think that taking away from Peter to pay Paul is a simple moral and mathematical exercise.

    My biggest concern is that they have chosen to cut defence but not all of the foreign aid. That is a foreign policy priority exercise that needs a little bit of explaining to me. Still, maybe we will find out the rationale for that soon.

  • Halfer

    The problem with capitalists is that they think an economy is purely for accrueing personal wealth all else be damned

  • slug

    Devaluation is a lever that allows us to expand the economy, a lever unavailable in a currency union such as the EZ

  • “The function of socialism is to raise suffering to a higher level.”
    — Norman Mailer

  • White Horse

    David

    Whereas the purpose of ideological nationhood, or worshipping the national interest, is suffering for nothing.

    Do you reject Satan and all his empty promises?

  • White Horse

    Along with his representatives in Stormont.

  • White Horse

    Now you’re talking.

  • Greenflag

    Drumlin’s rock, Slug ,

    Old thinking – Devaluation is a lever which has served the UK badly since the 1970’s . While it may appear on the surface that it helped the UK economy it actually has had the opposite effect on the non financial areas of the UK economy .

    The Germans did’nt devalue their mark once during the period 1970 -2002 when the Euro came into effect. . The UK devalued several times during that time and most notoriously were forced into a devaluation by international financier George Soros who took the Bank of England for a billion pounds sterling.

    Devaluation never made British industry more competitive . It merely expedited it’s decline 🙁 with more than a little help from Mrs Thatcher the grocer from Grantham’s daughter:(

    And they are now on the same road again 🙁 I guess if it doesn’t work the first time it’ll probably work the second eh ?

    Having wiped out British industry in the 1980’s and 90’s I guess all that’s left is to wipe out the City of London . Would I put it past them ? Not at all 🙁

  • slappymcgroundout

    “My biggest concern is that they have chosen to cut defence…”

    I’m going to send an email to the Argentines, telling them to update their plans for the conquest of the Malvinas. 19 surface ships in the Royal Navy with no air cover. Should be fun.

  • Halfer

    Check again with IFS.

  • Halfer

    David, the private sector couldn’t live within it’s means hence the huge bank bailouts, paid for by the taxpayer, that caused the huge deficit to begin with. The financial sector caused this depression not the public sector.

    Unfettered free market capitalism is an absolute fallacy. Friedman was wrong.

  • Alias

    So who is going to pay your pension and spoon-feed you when you get older and more senile if not the nation-state? If the state doesn’t exist to promote the interests of its own nation, then who is going to assume that burden? Do you expect the Africans to send you free food?