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Originally Posted by handinglove  Slash and burn policies will DEEPEN the recession. What do you think are the biggest costs involved in the provision of Public Services? You guessed it, Labour. What do you think is going to happen if even more people get laid off. Thats right, a further collapse in consumer spending and confidence, leading to more job losses and down the ********************ter we go. Cop on lads, the conservative recession beating handbook is discredited.
Massive Fiscal Stimulus is needed along with complete nationalisation of the banks. |
Perhaps you can explain this to me. In a small (and getting smaller) open economy we should tax private labour (now and in the future by borrowing ) to keep public labour at high levels and continue to pay social welfare. What lender is going to provide this and at what rate? (feargach pointed out elsewhere that savings of six billion plus could result into largescale mortgage default, but surely there are other ways eg 12 month embargo on issuing proceedings, insurance, state support for interest payments). Is there anything wrong in raising income tax from 25% of all income to a more european proportion and then cutting current spending to the level which current revenue raises?