UK Tax payers cash windfall

Discussion in 'Current Affairs, News and Analysis' started by heard_it_all_before, Dec 8, 2009.

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  1. Not sure if this has already been covered so I'll start it off anyway.

    As the BoE is busy pumping Billions upon Billions into buying Govn't debt and also into filling some of the UK Banks vaults with cash that they are wary about lending; what effect would it have on the economy if this was to now stop and the Treasury was instead to make several staged payments of say £250 each to every house hold, or tax payer, in the country. Not in the form of cash as obviously instead of the Banks hoarding it the people might hoard it, but instead in the form of a Gov't/Treasury credit that was redeamable in any UK Store/Retailer/online shop etc. etc. etc.

    Surely this would spread the wealth finer than the Banks Vaults or Govn't Gilts can ever do plus it would also secure jobs stimulate the economy and create a sense of good feeling amogst the population. Linked into that is the fact that the Treasury would also receive large lumps of it back in the form of VAT, Income Tax and Corporation tax. Plus, it might also save a bit of cash in welfare payments to those that are pending being laid off.

    Your opinions please..
  2. Biped

    Biped LE Book Reviewer

    We'd use those credits to buy foreign goods, imported from China, which would have even bigger gold reserves as a result.
  3. Maybe so, but we've already depleted Korea's stocks of Kia's under the scrappage scheme.
  4. Your opinions please..

    Sorry... it would just be so much 'Monopoly Money'...... The more 'Cash Notes' that are printed by the Bank of England in Fiscal Easment, the more of a chance that inflation will take off in the next few years. Its a fine-line that has to be balanced not to print too much 'Fiscal Easment' to pour into the Banks Coffers, and not to be like a Virgin, and withdraw too early otherwise the economy can be badly effected and could blow up into the "pregnancy of a real W-Dip" recession, if we haven't already reached that stage yet.

    However, having said this, I still wouldn't trust or believe anything that Brown, Darling or any of their 'Henchpersons' stated about the UK economy. Rather what the IMF, or the OECD says about the current and possible future state of the UK's Public Finances.

    But we await with baited breath what the Pre-Xmas budget announcement will be in a few days time. And what the first months of 2010 bring in as to whether Brown and Pals have a clue as to what they are doing, is going to be effective or not....! :?
  5. The only thing wrong with your plan is that it doesnt take account of the need for the banks to be able to support massive salaries and perks for senior staff. In the jargon of yesterday, what the guvernmonkeys are doing is "supporting the national institutions". In a real world, some of them would go to the wall - those that are inefficient and badly run. But there are too many snouts eager for the trough and anyway a very large proportion of the money that would be distributed if your suggestion were to be implemented would only end up in the breweries pockets. As did the winter fuel allowance I received the other week. Cheers!
  6. I think the 'free money' wheeze was tried abroad, perhaps in New Zealand. The difference there was that the scheme was truly intended to stimulate the economy. For Gordon, giving cash to us proles instead of squeezing every penny that he can out of us would be anathema. He'd keel over and die before he could even launch a retaliatory Nokia if anybody even suggested such a scheme.

    Here, 'quantitative easing' has got nothing to do with either stimulating the economy or controlling deflation. The government is simply printing money to pay its bills.

    The only reason the banks are involved is that the Bank of England is forbidden by law from printing money then giving it straight to the government. This is laid down in the Preventing Britain Turning Into Zimbabwe Act of 1794. Gordon needs a middle man to get around the law and the banks are it.

    Xerox cash currently accounts for about 25% of government expenditure. Hence the government would stop paying the 25% of its bills that it regards as least important. Putting my Gordon hat on, I'd do this:-

    Stop paying the wages of the armed forces. They can't strike and they can be accommodated in barracks/tents/trenches depending on how generous I feel.

    Stop paying the police for much the same reason as above.

    Stop paying the prison officers 'cos they can't strike either.

    Cancel everything that can be cancelled at the MoD

    See how much the Yanks will offer for our Chinook and Merlin fleet. If god meant us to fly in helicopters, he wouldn't have given us legs.

    Stop paying for the Civil List. They can shoot pheasants for a living.

    Reduce the single person's tax allowance to zero (except for Somalian lesbians).

    Stop construction for the 2012 Olympics. They can use leisure centres like everybody else.

    Compulsory purchase of Eton College. Rent it to Group 4 to use as an asylum detention centre.
    etc etc
  7. Well, the US government gave everyone a $500 tax credit this year and that seemed to help get things moving along over there.