> But if tax hikes and spending cuts hamper growth significantly, then austerity could be ill-advised. Indeed, if the fiscal multiplier is really, really high in certain situations—such as during a downturn—then austerity could prove counterproductive. Those higher taxes and severe spending cuts will cripple growth so much that the nation will end up with an even bigger deficit than it started out with.
The govt is probably the best investment leader and entrepreneur and yet we constantly choose to underfund its capabilites and moan that the market moves too slowly. We want growth but don’t lay the foundations through govt spending and incentive structures. Great innovations of our time were spearheaded by government research and development programs. The private sector iterates but rarely creates new products at the speed the public sector can achieve.
Yeah, well, we already knew things weren’t going terribly well.
Bugger and I’d gone and spent it already in anticipation. Put the heating on for ten minutes.
Its what the news told people that they wanted
Tax rises and austerity.
Same people complaining about the mini budget are now complaining about interest rate rises and tax rises
It’s crazy really rather than reduce the 45% all they had to do was keep this and increase the tax free allowance so all people with income benefited.
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Tories: Yeah sorry, You need to pay the bill again because we got ours already.
Also Tories: We are still uncapping bankers bonuses.
Austerity is often harmful to the economy and to growth.
Not sure whether the Tories don’t know this or just dont care because the harm to the poor is the point.
From a Washington Post article on [IMF research](https://www.washingtonpost.com/news/wonk/wp/2012/10/12/imf-austerity-is-much-worse-for-the-economy-than-we-thought/?variant=d846d44221ecba95)
> But if tax hikes and spending cuts hamper growth significantly, then austerity could be ill-advised. Indeed, if the fiscal multiplier is really, really high in certain situations—such as during a downturn—then austerity could prove counterproductive. Those higher taxes and severe spending cuts will cripple growth so much that the nation will end up with an even bigger deficit than it started out with.
The govt is probably the best investment leader and entrepreneur and yet we constantly choose to underfund its capabilites and moan that the market moves too slowly. We want growth but don’t lay the foundations through govt spending and incentive structures. Great innovations of our time were spearheaded by government research and development programs. The private sector iterates but rarely creates new products at the speed the public sector can achieve.
Yeah, well, we already knew things weren’t going terribly well.
Bugger and I’d gone and spent it already in anticipation. Put the heating on for ten minutes.
Its what the news told people that they wanted
Tax rises and austerity.
Same people complaining about the mini budget are now complaining about interest rate rises and tax rises
It’s crazy really rather than reduce the 45% all they had to do was keep this and increase the tax free allowance so all people with income benefited.