How are we going to pay for it all?

Eziemnaik

Über Member
Mainstream Tory economic s - when the coffers are bare - recover the money from poor people - because poor people have all the money.
Labour and Libs supported austerity
Either all of them are illiterate money wise (I doubt it), or they did it on purpose - purpose being staying in the job by following the public mood - lots of people wanted austerity at that moment (self flagellation for sins of excessive life:becool::laugh::laugh::laugh:)
 

Eziemnaik

Über Member
John Major in his recent Middle Temple speech reckoned austerity had now become untenable, even for the Tories. Whether it is or not I don't know.

Maybe a tax surcharge would be in order, solidarity with those who needed to have their livelihoods saved by the government - a relatively small amount on average payable over 30 odd years ought to pay off the amount the government has spent. Lower unemployment and the continued existence of companies that would otherwise have gone to the wall will automatically mean some of the outlay will be recouped.
Taxes are very useful as inflation control - but they have little effect on government spending
It is very counterintuitive, just as the fact that when government has more debt is a good fact, but it is correct.
www.levyinstitute.org › pubsPDF
Can Taxes and Bonds Finance Government Spending? Working ...
Working link:
https://ideas.repec.org/p/lev/wrkpap/wp_244.html
https://www.ft.com/content/673b0be2-3559-4b61-9224-7c271ae4ed31
 
Taxes are very useful as inflation control - but they have little effect on government spending
It is very counterintuitive, just as the fact that when government has more debt is a good fact, but it is correct.
www.levyinstitute.org › pubsPDF
Can Taxes and Bonds Finance Government Spending? Working ...
Working link:
https://ideas.repec.org/p/lev/wrkpap/wp_244.html
https://www.ft.com/content/673b0be2-3559-4b61-9224-7c271ae4ed31
The Average person in the UK has a middling tax burden. So if you drew up a league table of tax burdens the UK would be about half way.

Germany with its top notch NHS and £24k state pension is top of the league.

I was reading the other day - that the rise of centre left parties after WW2 was in part attributed to the incumbent govts trying to cut spending. That could explain the shenagin s in the N10 this week - with a shift away from the ultra right hard nose tories.
 
The Average person in the UK has a middling tax burden. So if you drew up a league table of tax burdens the UK would be about half way.

Germany with its top notch NHS and £24k state pension is top of the league.

I was reading the other day - that the rise of centre left parties after WW2 was in part attributed to the incumbent govts trying to cut spending. That could explain the shenagin s in the N10 this week - with a shift away from the ultra right hard nose tories.
Germany is middling by EU standards; the UK is towards the bottom end.

https://tradingeconomics.com/country-list/government-spending-to-gdp

My understanding is that UK govt spending is overstated relatively by this measure too, as our health spending is directly funded by govt, whereas compulsory insurance elsewhere isn't included in govt spending but is essentially a tax.
 
Germany is middling by EU standards; the UK is towards the bottom end.

https://tradingeconomics.com/country-list/government-spending-to-gdp

My understanding is that UK govt spending is overstated relatively by this measure too, as our health spending is directly funded by govt, whereas compulsory insurance elsewhere isn't included in govt spending but is essentially a tax.
That's interesting about health/tax/spending.

Even fuel to the idealogy argument.
 
Public sector pay freeze ......means I might not get my 0.5% next year.

Seems public sector pay is the new "tax on fags"

I couldn't really give a toss about my 0.5% to be honest. But it's all politics - a public sector pay freeze in relative terms won't raise much funds. And if it's anything like 2009/10 means I will spend hours interviewing for replacements for staff who leave. ....and let's not forget this bailout isn't as big as the banks bailout.
 

Jenkins

Legendary Member
Location
Felixstowe
Public sector pay freeze ......means I might not get my 0.5% next year.

Seems public sector pay is the new "tax on fags"

I couldn't really give a toss about my 0.5% to be honest. But it's all politics - a public sector pay freeze in relative terms won't raise much funds. And if it's anything like 2009/10 means I will spend hours interviewing for replacements for staff who leave. ....and let's not forget this bailout isn't as big as the banks bailout.
Don't forget the many previous years of below inflation rises that public sector employees (me included) have suffered. This year will be the first time we've had a 'proper' rise for some time, but it's still been delayed for around a few months. What message does it send to those the Government expect to implement the new Brexit requirements that they won't be getting any extra pay next year? Thankfully I'm in the position of being able to consider early retirement.
 
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