Brexit and the easing of austerity.

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07-01-2016, 12:17 PM
Ash

Brexit and the easing of austerity.

http://www.bbc.co.uk/news/business-36682368

Suddenly Osborne-May are questioning austerity and reconsidering the case for investment and growth. Hmmm. Now dere's, as they say, a ting.
07-01-2016, 12:31 PM
Pokster

Quote:

Originally Posted by Ash

http://www.bbc.co.uk/news/business-36682368

Suddenly Osborne-May are questioning austerity and reconsidering the case for investment and growth. Hmmm. Now dere's, as they say, a ting.

Not as clear cut as that sounds... Osbourne has said there is now no chance of being in surplus by 2020 and with the lower growth forecast austerity isn't worth it
07-01-2016, 12:49 PM
Ash

Quote:

Originally Posted by Pokster

Not as clear cut as that sounds... Osbourne has said there is now no chance of being in surplus by 2020 and with the lower growth forecast austerity isn't worth it

Not sure I buy that tbh. We've had low growth all along - arguably because of austerity. I must admit that I was agnostic about austerity from the outset, and reluctantly prepared to give the idea the benefit of the doubt as a drastic response to the 07 crash, but we just been bumping along the bottom. Perhaps austerity hasn't worked. It certainly hasn't been popular.
07-01-2016, 01:11 PM
Pokster

Quote:

Originally Posted by Ash

Not sure I buy that tbh. We've had low growth all along - arguably because of austerity. I must admit that I was agnostic about austerity from the outset, and reluctantly prepared to give the idea the benefit of the doubt as a drastic response to the 07 crash, but we just been bumping along the bottom. Perhaps austerity hasn't worked. It certainly hasn't been popular.

Would never be popular! Good reasoning that the Govt should be borrowing extra now as interest rates (2yr Gilts got to - yield today) has never been so low and might never be down here again, so borrow now for infustructure projects and investment
07-01-2016, 01:20 PM
Mo Britain less Europe

It never makes sense to borrow money, however cheap, unless you know you're going to get more money than you borrowed for whatever you do. Too often "investment" is being used when what they mean is "spend".
07-01-2016, 01:35 PM
Ash

Quote:

Originally Posted by Mo Britain less Europe

It never makes sense to borrow money, however cheap, unless you know you're going to get more money than you borrowed for whatever you do. Too often "investment" is being used when what they mean is "spend".

Footballistically, yes.

Whether you are buying players or infrastructure you can never see into the future what the returns will be. Britain does need infrastructural investment, though.
07-01-2016, 01:40 PM
Mo Britain less Europe

Quote:

Originally Posted by Ash

Footballistically, yes.

Whether you are buying players or infrastructure you can never see into the future what the returns will be. Britain does need infrastructural investment, though.

A country always needs to spend money. But it is only an investment if there's a return. Otherwise it's expenditure.
07-01-2016, 01:41 PM
Sir C

Quote:

Originally Posted by Mo Britain less Europe

A country always needs to spend money. But it is only an investment if there's a return. Otherwise it's expenditure.

Mind you, that Hitler chap did well with the whole motorway-building thing, didn't he?

Makes you think, like.
07-01-2016, 01:44 PM
Ash

Quote:

Originally Posted by Mo Britain less Europe

A country always needs to spend money. But it is only an investment if there's a return. Otherwise it's expenditure.

Take the new sewer under the Thames. Absolutely vital to sustain the growth of London, but there's no money in poo. Without it though, we well have The Great Stink 2.0. The growth in GDP that would follow the growth of London will eventually pay for the sewer, but something designed for the next couple of centuries isn't going to pay for itself within a couple of years.

The jobs created, though will create more jobs and revenues etc.
07-01-2016, 01:48 PM
Mo Britain less Europe

Quote:

Originally Posted by Ash

Take the new sewer under the Thames. Absolutely vital to sustain the growth of London, but there's no money in poo. Without it though, we well have The Great Stink 2.0. The growth in GDP that would follow the growth of London will eventually pay for the sewer, but something designed for the next couple of centuries isn't going to pay for itself within a couple of years.

The jobs created, though will create more jobs and revenues etc.

Yes, I take your point. But it's still expenditure. Doesn't mean it shouldn't be done but whilst the sewer will enable business to be done, it isn't a business - except for whoever gets paid to do it/run it.