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The Economy

#1
Q2 / 2009 GDP growth (contraction) results:

+ 0.2 US
+ 2.0 China (approx)
+ 0.6 Japan
+ 0.3 Germany
+ 0.3 France
- 0.7 UK

Q3 / 2009 GDP growth (contraction) results:

+ 0.9 US
+ 2.0 China (approx)
+ ?.? Japan (forecast positive)
+ ?.? Germany (forecast positive)
+ 0.3 France (forecast)
- 0.4 UK

What is the problem with the UK economy?

Is it because HMG/New Labour, despite their numerous and vociferous protestations to the contrary, have NOT applied the most effective remedies?

Or is it because the UK economy was structually far weaker than its major competitors in the first place - due to 12 years of HMG/New Labour economic policies, perhaps?

Or is it because....?
 
#3
whitecity said:
What is the problem with the UK economy?
Or is it because the UK economy was structually far weaker than its major competitors in the first place?
Yes.
Plus the IMF said months ago we would be the last industrialised country to come out of recession....I foresee Spring 2010 as being the turnaround and that is what Mervyn King said last year I believe.
 
#4
I am not trained in the financial aspects that many can boast,But I can have a shot in the dark about a few of the reasons.

Massive Welfare state....meaning a big drain on resources.

Huge civil service list.....or non-jobs if you prefer....huge drain.

Uk has lost its manufacturing capabilty as such,we do not really produce much anymore.

High tax burden and general high cost of living,people not spending because of this....lower tax income for government.

A lot og unregistered,illegal,immigrant,cash in hand work being done...no tax income for government.

The governments approach over the last decade to good financial decisions and planning for a rainy day being the equivalent of a sailor hitting his first port in over two years at sea......spend it all at the first floozy who flashes her eyelashes.
 
#5
seems like inaccurate figures to be honest. the US for example has just announced a growth of 3.5%GDP for the 3rd quarter of 2009.

Uk has lost its manufacturing capabilty as such,we do not really produce much anymore.
27% of GDP is from manufacturing? not as big as yesteryear of course but thats what happened when thatcher dragged us to a service economy.
 
#8
Toxicseagull said:
seems like inaccurate figures to be honest. the US for example has just announced a growth of 3.5%GDP for the 3rd quarter of 2009.

Uk has lost its manufacturing capabilty as such,we do not really produce much anymore.
27% of GDP is from manufacturing? not as big as yesteryear of course but thats what happened when thatcher dragged us to a service economy.
Maybe so. But the problem with that is that most of what is manufactured in the UK is first imported as raw materials; which as a result of the weak pound is costing some 25% more than it did 3-4 years ago.

As mentioned by another poster. The drain on the public purse by the Public Sector and the Welfare Sector is just to large.

In the last 12 years Labour have added another 800,000 to the public sector pay roll, that's another 800,000 jobs that don't make money or pay real term taxes. It's like using one credit card to pay another cards monthly bill. Unsustainable.
 
#10
They broke into the "Piggy Bank" in 97,and spent all the "Rainy Day" money. All the other countries saved theirs! It's called basic economics. :wink:

A bit simplistic I'll grant you,and I don't have a degree,but I've watched two Jock prats,bring this country to its knees,by implementing their pet ideas,with my money!

I don,t think they will have a hand in the recovery,thank god! :roll:
 
#11
RoofRat said:
They broke into the "Piggy Bank" in 97,and spent all the "Rainy Day" money. All the other countries saved theirs! It's called basic economics. :wink:

A bit simplistic I'll grant you,and I don't have a degree,but I've watched two Jock prats,bring this country to its knees,by implementing their pet ideas,with my money!

I don,t think they will have a hand in the recovery,thank god! :roll:
I hope you are right.
 

Fronty

Old-Salt
Book Reviewer
#12
heard_it_all_before said:
In the last 12 years Labour have added another 800,000 to the public sector pay roll, that's another 800,000 jobs that don't make money or pay real term taxes. It's like using one credit card to pay another cards monthly bill. Unsustainable.
Hang on a second! Didn't Labour pledge to reduce the bloated public sector and force it to become streamlined and effective at the last election?

I can't believe that they would say such a thing and then not carry through on it.
 
#13
Found as a comment on Guido Fawkes site:

Sung to the tune of the Monster Mash!

Gordon Brown’s Monster Crash

I was working in the bunker late one night
When my eyes beheld an eerie sight
For my monster debt by from spending began to rise
And suddenly to my surprise

The economy did the Crash
It did the Monster Crash
The Monster Crash
It was an off balance sheet smash
I made a terrible hash
It caught on fire in a flash
It burnt to ash
I made the mother of all crash

From my twitterings about the middle east
To the master baiter where the brain dead feast
The trolls all typed from their humble abodes
To try and get a jolt before my electoral implode

They did the hash
They did the old rehash
That I was Flash
That I had a secret stash
A stash of cash
A stash of golden cash
But they did the math
And found there was no cash

Out from his coffin, Mandys voice did ring
Seems he was troubled by just one thing
He opened the lid and looked from his lair
And said, “dump this loser, bring back Tony Blair!”

My ratings really did crash
Polls say.. a monster crash
A Wall Street crash
The FSA, was really trash
The banking smash
It caught on fire in a flash
I was rash
And now we’re all poor white trash.
I was rash, And now we’re all poor white trash.
Its so unfair,
I blame Tony Blair
He left me the Crash
And now my teeth I Gnash
In the Crash
The MONSTER CRASH..

repeat to fade into oblivion around May 2010

Edited to add the following link:
http://www.youtube.com/watch?v=_kAU4w8ZGMQ&feature=player_embedded#
 
#14
Toxicseagull said:
seems like inaccurate figures to be honest. the US for example has just announced a growth of 3.5%GDP for the 3rd quarter of 2009.
The septics report their figures on an annualised basis whereas most of the other major economies report growth for the quarter in question i.e. 3.5% is 4 X 0.9% give or take.
 
#15
Deadreckon said:
Toxicseagull said:
seems like inaccurate figures to be honest. the US for example has just announced a growth of 3.5%GDP for the 3rd quarter of 2009.
The septics report their figures on an annualised basis whereas most of the other major economies report growth for the quarter in question i.e. 3.5% is 4 X 0.9% give or take.
0.9% is EXACTLY the figure reported for Q3. See my original post at the top of the thread.
 
#16
whitecity said:
Deadreckon said:
Toxicseagull said:
seems like inaccurate figures to be honest. the US for example has just announced a growth of 3.5%GDP for the 3rd quarter of 2009.
The septics report their figures on an annualised basis whereas most of the other major economies report growth for the quarter in question i.e. 3.5% is 4 X 0.9% give or take.
0.9% is EXACTLY the figure reported for Q3. See my original post at the top of the thread.
I know, I wasn't questioning your 0.9% I was pointing out how the 0.9% you posted relates to the 3.5% being reported in the News. Or are you driving at something else :?
 
#18
The root of our economic woes is spin.

Before the 1997 election the 'Iron Chancellor' (remember him?) pledged no tax rises under Labour. He then proceeded to impose crippling levels of tax on businesses and individuals to fund his spending sprees while spinning that the base rate of income tax had not changed.

He promised that unemployment would not soar under his Labour government as it had done under previous Labour governments. We now have one third of our population living off benefits while the 'official' unemployment level is spun down to 2.5 million.

Gordon promised that inflation wouldn't get out of control. The method of calculating inflation has been changed 12 times since 1997. The 'basket of typical goods' used to define average prices now includes such common articles as plasma tellys and gerbils bought from pet shops. (Do I see the hand of a certain noble Lord at work?).

Double digit inflation was spun down to 2.5%, forcing the Bank of England to set interest rates at a woefully inadequate level. The resultant credit boom had Gordon reminding us all how grateful we should be for the cheap mortgages that we could get, even those of us who had no hope of paying the mortgage back. The FSA, didn't want to upset Gordon's 'economic miracle' by bursting the credit bubble. They stayed silent so the City jumped on the bandwagon and started trading debt instruments that were worth less than an IOU found on the floor of a bookie's shop.

Gordon and his gimp next door couldn't even spell 'securitized debt instrument' let alone understand what it was so they let the City get on with it.

The rest, as they say, is history.
 
#19
Herrumph said:
5 posts on the topic of today's economy before someone blames Maggie Thatcher.
where did i blame her? its only a negative if you assume manufacturing needs to be a overwhelming driver of income and if you did think like that im guessing you wouldnt support thatchers moves, so why the huff?

btw the uk compares nicely to the US in manufacturing which is only 18% gdp

Maybe so. But the problem with that is that most of what is manufactured in the UK is first imported as raw materials; which as a result of the weak pound is costing some 25% more than it did 3-4 years ago.
aye that certainly is a problem. arent the japanese in a similar position?
 

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