I agree that this is about economics and I think Osborne has got it wrong. He is taking £113 billion out of the economy at a time when there is a fragile recovery. That to me is economic madness and there will be a double dip recession.
The VAT increase is a disgrace and will be the death of many businesses but in particular the pubs may as well close their doors. Since the smoking ban 50 pubs a week have been closing and many landlords are working ridiculous hours to just survive. A 2.5% increase in VAT will lead to the price of beer increasing by anything over 10p a pint. The landlords will be caught in a 'Catch 22'. Absorb the increase and go bust or pass it on and the remainder of your patrons will go to TESCO or ASDA and drink at home.
I also think it is a disgrace that the banks get a £2 billion levy while the population get a £13 billion VAT bill. The banks can increase their charges or abolish free banking to pay the levy but the 'man in the street' just has to pay the VAT and that is after having their wages and child benefit frozen and their tax credits stopped.
I hate to disagree with you Michael, but I think people will still find the money to go out and drink. My local pub is always packed and I think will continue in that vein regardless of the VAT.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
I have to say I agree - many people have strange priorities and will always find the money for drink and cigarettes while moaning they don't have any money.
I think we are all going to have to agree to disagree on this one!
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
The country needs investment and growth which are the only ways to recover. These bring increased taxation receipts and lower the dole queues thereby cutting welfare costs. Britain has an excellent credit rating and British government bonds are highly sought after by international investors.
These cuts and particularly the VAT increase will push the country into a worse recession than the eighties. This will lead to higher deficits than before and our children will end up paying for it eventually. The difference will be in the number of lives ruined before this economic experiment of George Osborne collapses like a house of cards.
While this isn't good, we couldn't go on the way we were with the government borrowing more and more money to prop up hundreds of thousands of unnecessary jobs that they created to make the figures look good.
Don't agree Michael. George is merely trying to put right what has happened in the past few years.
I'm not happy with the cuts and increases, especially as I won't get a payrise for at least two years! However I do think they are necessary and even Labour would have ended up going down this route eventually.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
ok slightly baffled by how we cant blame the old goverment. we had one of the biggest growths in history under them nearly ten years. yes i hate the fact i will have less each month but if action is not taken now my children will suffer. but the chances are in 5 years time they will get back in power then we go around in a big circle get us in a mess be a state country hand outs to everyone and the good and honest people of this country suffer. by then i might have won the lotto then i can move away.
Doesn't matter who is in power - we will all have to pay the price eventually.
Who knows what will happen in five years time?
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
Whilst the recession and problems are global, some countries have faired better than others, Canada for example has no where near the problems of the US and Uk. So the government has an impact on how much the world wide recession affects us, so they do share some of the blame, its there polices and procedures, whilst not necessarily causing the problems, have not helped to reduce the it. And as for the extended period of economic growth under the labour governemnt, we all know this was facilitated by credit, an extended period of debt accumulation more like.
I am very sorry you feel that way. I think we all know that there are good and bad in all communities.
Last edited by kallis3 on Thu Jun 24, 2010 7:55 pm, edited 1 time in total.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
kallis3 wrote:
I am very sorry you feel that way. I think we all know that there are good and bad in all communities.
YOU ALSO SAID ABOUT SCROUGERS MOST PEOPLE ON THIS THREAD SAID VERY VERY BAD NO GOOD STUFF AND I WANT YOU ALL TO SAY SORRY THAT PERSON WHOS LOCKED OUT DID NOT SAY MUCH IT CAME FROM SOME OF THE OTHER POSTERS
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
