Brownonomics not a disastrous as reported

[Undesired Walrus]

Seems like that incompetent, stoic, one-eyed Scottish dunce wasn't all that bad after all:

http://www.bbc.co.uk/news/business-11107415

The UK economy grew by more than initially thought in the second quarter of 2010, boosted by a strong performance by the construction sector.

The economy grew by 1.2% in the quarter, the Office for National Statistics (ONS) said, revising up its initial estimate of 1.1% growth.

That was the fastest rate of quarterly expansion recorded since the first three months of 2001.

Construction sector, one of the first things that the coalition government scaled back on funding (Forge-masters).

 

[uk_dave]

Seems like that incompetent, stoic, one-eyed Scottish dunce wasn't all that bad after all:

http://www.bbc.co.uk/news/business-11107415


Construction sector, one of the first things that the coalition government scaled back on funding (Forge-masters).

And cutting the school building programme.

So, we have a depressed housing market with people who bought in 2007 being told they may be in negative equity for the next four years (hard to move up or extend your property in those conditions)

Commercial building still shaky given that we're in danger of talking ourselves into another recession so no one wants to invest.

Probably the only sector that will retain growth will be the construction of new supermarkets.

Kinda get the feeling the coalition are deliberately pissing on the green shoots of recovery so they can repeat their mantra of "look what a mess labour left us with"

 

[commandlinegamer]

Isn't at least a big part of the problem, a runaway housing market in the first place? I recall a documentary a couple of years back where they took random properties in London and on average had 18-20% increases in 'value' in a year.

 

[Fiona]

The housing "market" is the root of many of our economic ills. The fact that people still talk in terms of hurrah words when house prices go up is a measure of our collective madness. In my opinion, of course

Oh and as an aside: I was just listening to an interview with Tony Blair on the occasion of publication of his book. I always knew he was a self aggrandising, greedy bastard: but I stopped short of thinking he suffered messianic delusions. Not so sure now.

 

[Hubert Cumberdale]

Construction sector, one of the first things that the coalition government scaled back on funding (Forge-masters).

You do realise that there is no money, that we are borrowing over £10billion a month to keep our heads above water, and that this isnt sustainable?

Seriously, what do people whinging about cuts actually expect to happen? A few trillion pounds of magic fairy pixie money is going to fall out of the sky and make house prices go up again?

 

[funk de fino]

You do realise that there is no money, that we are borrowing over £10billion a month to keep our heads above water, and that this isnt sustainable?

Seriously, what do people whinging about cuts actually expect to happen? A few trillion pounds of magic fairy pixie money is going to fall out of the sky and make house prices go up again?

Maybe if the budget did not affect the very poorest the most, then the cuts may not look so hypocritical.

 

[Giz]

Maybe if the budget did not affect the very poorest the most, then the cuts may not look so hypocritical.

What would you cut instead?

 

[manxman]

What would you cut instead?

Blairs throat.

 

[Thunder]

Blairs throat.

dude..

 

[Undesired Walrus]

You do realise that there is no money, that we are borrowing over £10billion a month to keep our heads above water, and that this isnt sustainable?

So we cut back on what is boosting the economy?

Cutting the coalitions plan for a marriage tax break would be more than enough to keep forgemasters.

 

[Hubert Cumberdale]

So we cut back on what is boosting the economy?

Cutting the coalitions plan for a marriage tax break would be more than enough to keep forgemasters.

How are forgemasters boosting the economy when you need to cancel tax breaks to afford a taxpayers subsidy to keep them solvent?

Maybe if the budget did not affect the very poorest the most, then the cuts may not look so hypocritical.

Dont cuts affect the poorest almost by definition? The richest after all dont consume much in the way of public services. In what way are the cuts hypocritical?

Maybe the answer would have been to not go around recklessly splurging unfathomable sums of money we dont have in the first place?

 

[Hubert Cumberdale]

Blairs throat.

Proceeds from the TV rights in the middle east would probably pay off a big chunk of our debt. You might be onto something.

 

[manxman]

Nice of you to say so herbert, a man with vision such as yourself is never a waste of space, i hope we bump into each other again..

I would prefer they stretch his neck saddam style.

 

[lomiller]

Seriously, what do people whinging about cuts actually expect to happen? A few trillion pounds of magic fairy pixie money is going to fall out of the sky and make house prices go up again?

There is no magic required for a central bank to make money fall from the sky...

 

[Hubert Cumberdale]

There is no magic required for a central bank to make money fall from the sky...

True, as Mystic Mervyn demonstrates in his "Now you QEse it, now you dont" trick.

Perhaps I should have said wealth, rather than money.

 

[funk de fino]

What would you cut instead?

Things that affected the richest. Duh.

 

[funk de fino]

Dont cuts affect the poorest almost by definition? The richest after all dont consume much in the way of public services. In what way are the cuts hypocritical?

They said the budget would not affect the poorest the most. It does. Possibly lying more than hypocritical. 20% VAT. Another Lie.

Maybe the answer would have been to not go around recklessly splurging unfathomable sums of money we dont have in the first place?

Maybe the answer was to have numerous boom and busts, millions out of work and interest rates at double figures over the last 10 years eh? Maybe the answer was not to continue to allow the financial sector to screw this country and then have to be bailed out.

 

[Hubert Cumberdale]

Things that affected the richest. Duh.

Like what. Duh.

 

[Fiona]

A few trillion pounds of magic fairy pixie money is going to fall out of the sky and make house prices go up again?

I see that you think house prices going up is a good thing: why do you think that?

 

[Hubert Cumberdale]

They said the budget would not affect the poorest the most. It does. Possibly lying more than hypocritical. 20% VAT. Another Lie.

Politicians lie. Thats not hypocrisy though. Thats just a fact.

Maybe the answer was to have numerous boom and busts, millions out of work and interest rates at double figures over the last 10 years eh? Maybe the answer was not to continue to allow the financial sector to screw this country and then have to be bailed out.

Yes indeed. You see we largely agree, only interest rates being too low is the cause of our troubles, not too high. They havent been double digits for well over 10 years either.

I quite agree that the financial sector should have been reigned in, which is one reason why 'Brownonomics' is/was such a terrible thing for this country. To be fair though, Brown had no option but to bail out the banks once TSHTF because a bank like RBS going under would have had a catastophic effect on the global economy. Perhaps he should have kept a closer eye on Fred Goodwin, rather than appointing him as a special advisor to the treasury and publicly stating that he wished to "encourage the risk takers"?

Maybe Brown should not have set inflation as the over-arching priority for the MPC having conveniently removed housing from the inflation index to quite fraudulently make himself look better and make us all think we are rich "cos my house has gone up £40k".