Reply to: Cameron desperate to lose ?

[AtW]

Whilst a surplus is mostly preferred to a deficit long term investment via a deficit can be very very positive.

Yes it CAN BE, but in case of Govt it almost always waste of money - corruption and incompetence, Govt simply can't be trusted with long term investments of YOUR MONEY (be it via debt to repay for future generations or taxes now).

You have been listening to too many Sun headlines!!

I never read the Sun even when I get the chance to flick through it.

HTH

[turbowoowoo]

At least their trains on time, faster and much cheaper than UK ones!

Romans what have they ever done for us!?

[turbowoowoo]

No, there is NO GOOD DEFICIT in Govt.

There never was.

PROFICIT is good.

Live within your means. Or go bankrupt.

You are still not listening. Try Economics for dummies

Whilst a surplus is mostly preferred to a deficit long term investment via a deficit can be very very positive.

You have been listening to too many Sun headlines!!

[turbowoowoo]

I agree mostly with your point but you've used a very bad example. I would also not be using anyone in the airline industry.


BBC News - Germany's Deutsche Bahn set for 'longest rail strike'

ATW again not listening

[AtW]

BBC News - Germany's Deutsche Bahn set for 'longest rail strike'

At least their trains on time, faster and much cheaper than UK ones!

[Pondlife]

Germany got sensible people, even if you look at the unions there they are working with the management in the interest of business. When was the last underground workers strike in Berlin?

I agree mostly with your point but you've used a very bad example. I would also not be using anyone in the airline industry.


BBC News - Germany's Deutsche Bahn set for 'longest rail strike'

[AtW]

It's the grand coalition in Germany that's balanced the books.

Germany got sensible people, even if you look at the unions there they are working with the management in the interest of business. When was the last underground workers strike in Berlin?

[BlasterBates]

It's the grand coalition in Germany that's balanced the books.

Works well, because it allows the government to ignore the inevitable nutcases you have in any party so ministers can just focus on getting their jobs done.

[AtW]

A deficit, where used for investment which yields greater return is good...

No, there is NO GOOD DEFICIT in Govt.

There never was.

PROFICIT is good.

Live within your means. Or go bankrupt.

[turbowoowoo]

No, deficit is NOT fine. Spending more money than you earn is NOT fine.

Borrowing money is a way to defer taxation or budget cuts to future generations, that is totally NOT fine.

You are not listening

A deficit, where used for investment which yields greater return is good...

problem is governments only look at close proximity vote winning investment

[AtW]

LOL at that one. Most of the Labout MPs hire people on zero hour contracts.

Not when they hire their wifes...

[Batcher]

Only a Labour governmanet will ban zero hours contracts, no more wondering when the next pay cheque will be, labour will guarantee everyone earns a living wage and the gready bankers will pay the bill.

LOL at that one. Most of the Labout MPs hire people on zero hour contracts.

[AtW]

Business that overborrows will go bankrupt, and that balances the market.

Govt that borrows does not want to go bankrupt, so it then fooks everybody over using many ways available to it (inflation, more debt to repay future generations, more taxes)

Therefore Govt should NOT be allowed to borrow, budgets must be strictly in proficit - in rare years when there is deficit it should be covered from Govt savings made in good years.

It should be a specific criminal offence for a politicians to make promises that would result in budget deficits - that would save the country from populists who want to spend somebody elses money in order to bribe their way to power.

[Zero Liability]

Why? As I just covered, a deficit is fine as long as more growth is produced then the cost of the borrowed amount.

From the point we are at now, borrowing money and investing it in projects that pay back more than the value of the amount borrowed + interest, pays down the debt far quicker than just leaving our countries infrastructure and business to rot while we wait for inflation to do its thing.

The problem isn't borrowing or a defict. The problem is incompetent/corrupt investment by a succession of bad governments from both sides of the house.

You seem to have a very amateur, simplistic view of the problem that sounds like little more than the sound bites the current (incompetent) government used to win over low-information voters.

You're expecting the government to borrow on the same basis as a business does, when it lacks both the price signals and incentives to do so, and socialises the costs via tax and, what amounts to the same, credit expansion. So basically they're 'investing' on someone else's dime.

Moreover, where's the evidence they're the least bit successful in this regard? Sounds like a boon for lobbyists and politically connected firms, and little else. This multiplier gibberish has been around for years and I can point to studies e.g. in the US that, even assuming the concept is valid (debatable in itself), show it to be at best neutral, at worst negative. You can look at Japan for an even worse example, and as for the EU, it is notorious for its waste and hasn't even passed an audit in what, 20 years?

[AtW]

There's a good chance there will be a grand coallition between Tory & Labour.

Nah, no chance.

Whoever wins next election won't be in Govt more than 1 term - that's because real cuts will kick in and even Labour now say they support them... it's much better to support them whilst being in opposition for next term and then blame Tories for another 20 years.