[img]http://imgkk.com/i/w9tk.jpg[/img]
[url]http://www.bbc.co.uk/news/uk-politics-25885606[/url]
[quote]Labour has pledged to balance the UK's books and deliver a current budget surplus in the next Parliament if it wins the 2015 election.
Shadow chancellor Ed Balls said Labour would pass a law to ensure it adheres to "tough" and binding fiscal rules.
These would include eliminating the deficit and reducing debt as a share of GDP between 2015 and 2020.
Chancellor George Osborne has already said a Tory government would aspire to an absolute budget surplus by 2020.
Labour is under pressure to assert its economic credibility in the face of claims from its rivals that it would increase spending and borrowing.[/quote]
Why do we need a surplus? Whats the point in the government keeping money around that it wont spend? We have institutions like the NHS that are falling apart from cuts, we need spending not cuts.
it all depends on your economic school of thought, in the case of government spending theres those that believe the defecit is a horrible idea and balanced books are the only solution, others believe that defecit is the only way to ensure the government survives
personally I'd like just better smarter spending instead of the piecemeal system and porkulous spending that occurs here in the u.s,
[QUOTE=carcarcargo;43660439]Why do we need a surplus? Whats the point in the government keeping money around that it wont spend? We have institutions like the NHS that are falling apart from cuts, we need spending not cuts.[/QUOTE]
'rainy day' fund.
and in the case of Britain, every day is a rainy day, both literally and financially.
Stop fucking cutting and spend more. Rapid short term drastic cuts are damaging us too much.
While spending money is great, they should be more transparent on where money actually goes, half of the time I hear it never reaches the end of the pipe so to speak.
[quote]Shadow Chancellor Ed Balls[/quote]
:v:
[QUOTE=carcarcargo;43660439]Why do we need a surplus? Whats the point in the government keeping money around that it wont spend? We have institutions like the NHS that are falling apart from cuts, we need spending not cuts.[/QUOTE]
Because you owe interest on the money you borrow.
[QUOTE=Thomo_UK;43660575]While spending money is great, they should be more transparent on where money actually goes, half of the time I hear it never reaches the end of the pipe so to speak.[/QUOTE]
says the guys who got paid from the same pipe to study the pipe
[QUOTE=sloppy_joes;43661419]Because you owe interest on the money you borrow.[/QUOTE]
As long as you know interest rates in advance this isn't really a problem.
[QUOTE=Sobotnik;43661447]As long as you know interest rates in advance this isn't really a problem.[/QUOTE]
How so? You owe money on the money you owe, if you continuously have a deficit then you'll just owe more money.
[QUOTE=sloppy_joes;43661474]How so? You owe money on the money you owe, if you continuously have a deficit then you'll just owe more money.[/QUOTE]
Because normally you agree the interest rates with the lenders and know if the country can or cannot make payments.
Most countries manage to make their interest payments without much of a problem. Some years you will have a surplus, some years you will have a deficit.
[QUOTE=Sobotnik;43661645]Because normally you agree the interest rates with the lenders and know if the country can or cannot make payments.
Most countries manage to make their interest payments without much of a problem. Some years you will have a surplus, some years you will have a deficit.[/QUOTE]
Yeah but if you continuously have a deficit then you basically just owe interest money and screw future generations because of your shortsightedness. British Debt is almost 100% of their GDP, how do you think that borrowing more money is a good idea?
[editline]24th January 2014[/editline]
If you have to borrow money to support your lifestyle then maybe it's time for a change in lifestyle.
[QUOTE=Sobotnik;43661645]Because normally you agree the interest rates with the lenders and know if the country can or cannot make payments.
Most countries manage to make their interest payments without much of a problem. Some years you will have a surplus, some years you will have a deficit.[/QUOTE]
But if for any reason the interest rate goes up, you'll not be able to borrow as much, and if you're dependent on borrowing for your economy, then the country will suffer, leading to higher interest rates, leading to etc. etc.
Ed Balls has now confirmed they plan to reintroduce the 50% tax rate on high earners
[url]http://www.bbc.co.uk/news/uk-25894312[/url]
[quote]A Labour government would reintroduce the 50p top rate of income tax for those earning over £150,000, shadow chancellor Ed Balls has said.
He said a government analysis which showed it did not raise much was skewed by assumptions made by ministers.
The last Labour government raised the upper tax band from 40% to 50% in 2010 in response to the recession but the coalition has since cut it to 45%.[/quote]
[QUOTE=lazyguy;43664656]But if for any reason the interest rate goes up, you'll not be able to borrow as much, and if you're dependent on borrowing for your economy, then the country will suffer, leading to higher interest rates, leading to etc. etc.[/QUOTE]
The country does not suffer from government borrowing. It is in fact the opposite, as a government deficit is an economic surplus (more inflows for the economy through government spending than there are leakages through tax). Interest rates set by a reserve bank are done as part of monetary policy to control things like inflation, there is no direct link between government borrowing and official interest rates.
God forbid anyone stimulates the economy, better just keep cutting everything.
[QUOTE=smurfy;43664695]Ed Balls has now confirmed they plan to reintroduce the 50% tax rate on high earners
[url]http://www.bbc.co.uk/news/uk-25894312[/url][/QUOTE]
They should do what Hollande did with the 75% tax on everything over 1 million.
[QUOTE=carcarcargo;43660439]Why do we need a surplus? Whats the point in the government keeping money around that it wont spend? We have institutions like the NHS that are falling apart from cuts, we need spending not cuts.[/QUOTE]
The nature of our economy is Boom and Bust, having a surplus means that at the next bust we won't be hit as bad.
[QUOTE=smurfy;43664695]Ed Balls has now confirmed they plan to reintroduce the 50% tax rate on high earners
[URL]http://www.bbc.co.uk/news/uk-25894312[/URL][/QUOTE]
I have to laugh at the "reintroduce" part, they brought it in a month before the 2010 general election despite having 13 years to do it and it was abolished because it was a massive incentive for an increase of Tax aversion.
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