Originally Posted by OzTennis (Post 11647677)

Yes, 1991 was a recession created by the Tories which you will deny but try this analysis of the 1980's/early 1990's disastrous management of the economy:

"The Lawson Boom – Background to Recession

During the 1980s the government allowed the economy to expand at a significantly higher rate than its long run trend growth rate. This was because they felt there had been a “supply side miracle”. They argued that its supply side policies enabled the economy to grow at a faster rate than before.

During the 1980s, the government kept interest rates low and cut income tax, especially for high earners. This helped increase consumer spending. Also, during the 1980s, there was a boom in the housing market. The rapid increase in house prices lead to an increase in consumer wealth and consumer spending. There was a big increase in consumer confidence.

Unfortunately it proved wishful thinking that the economy experienced a supply side miracle; most of the economic growth was caused by consumer borrowing and spending. This was reflected in a large current account deficit and growing inflation.

The effect of growth above the long run trend rate was to cause inflation and a large current account deficit.

To reduce the double digit inflation the government joined the Exchange Rate Mechanism in 1990, it was felt that by joining, inflation would be brought under control.

However, as the UK joined the ERM, the economy began to slow down, and it soon became difficult to keep the value of the Pound at its exchange rate target against the DM.

To maintain the value of Sterling the government had to:

Use its foreign currency reserves to buy sterling (the UK lost an estimated £3.5 – £21bn in the ERM)

Increase interest rates. In September 1992, interest rates were 10%, despite the economy being in recession. The government even increased rates further to 12% and even temporarily 15% in an effort to protect the value of Sterling. But, investors correctly predicted that these interest rates were unsustainable. "

Originally Posted by Beoz (Post 11647719)

Global recession tiger. Didn't read the rest of your post. Hope it was good. :)

Originally Posted by Beoz (Post 11647646)

Garry. Simple. 91 was a recession. Recovery. Ohhh once sort look where it left Tony. And Tony blew it.

Your uk boys are hopeless.

Originally Posted by Beoz (Post 11647646)

Now on a positive note for Labor. Check out Shortens budget policies. First good thing I've heard from Labor in both countries for errrrr..... um...... 40 years

Originally Posted by Beoz (Post 11647719)

Global recession tiger. Didn't read the rest of your post. Hope it was good. :)

Originally Posted by bcworld (Post 11647929)

But years after that recession ended and the economy had returned to consistent trend or above growth...5 years later...the tories were still running budget defecits. How much rope do you give them??

The early nineties recession was about a quarter of the size of the GFC in terms of UK GDP change. So you're content to let the tories run up nearly £240bn in defecits following a -1% GDP recession? By the same token running up deficits of about 4 times that would be excusable following the GFC (remember, the G stands for 'Global'!)?

Originally Posted by GarryP (Post 11647938)

Someone puts the evidence in front of you, and still you won't face it. Reality is far right types HATE government and government provided services. Every government service is the removal of the chance for one of them to make a tidy profit. Thus you get cutting of service, contracting out (which always seems to make it more expensive...) and dumb, unfunded tax cuts for their mates when times are good; so that when times are bad they can point to services and say "these need to be cut to balance the budget".

They sell the national economy as a household budget, to a bunch of muppet voters who think "that sounds like prudent household budgeting" - and don't realise that cutting spend for a nation, cuts income. The financial equivalent of bloodletting with leeches - often does nothing positive and can even make things worse.



Yeah, I pointed to it above. Sensible focusing on STEM and SMEs at a level that might actually make a difference (Hockey's stuff was fiddling round the edges).

We'll add it to the pile of sensible Labor policies shall we; the NBN, the stimulus package, the acceptance of Kyoto (finally), the 2020 summit, etc.

I'll leave it to you to make a list of the coalition failed policies - just think how long and ignominious that list is ...


http://www.thebeginwithinblog.com/wp...se-monkeys.jpg

Originally Posted by Beoz (Post 11648009)

Garry. These facts are only proving what a mess Labor have been in the UK. I'm not really sure how you can analyse to be any other way. Unless of course if you are wearing lefty blinkers.

Originally Posted by Beoz (Post 11648009)

I will happily complement Labor when its done well. Yes the recent budget ideas are great, not really something the Libs could have announced. ..... they would have been accused supporting the rich and their business mates. :) They've gone for the lefty budget, for the poles they had to really

Originally Posted by Beoz (Post 11648003)

At its peak during the recessioned 90's

Originally Posted by Beoz (Post 11648003)

the deficit wasn't much more than the Labor deficit before the GFC.

Originally Posted by Beoz (Post 11648003)

I'm not really sure how you could justify that pre GFC deficit figure.

Originally Posted by Grayling (Post 11646602)

....and you will live in a fairer, happier society when Abbott and his shower are booted out:thumbsup:

Originally Posted by Grayling (Post 11647065)

I agree...the Tories are a corrupt incompetent shower...a complete waste of space time and effort:thumbdown:

Originally Posted by Amazulu (Post 11648032)

Yet your fellow countrymen handed them a majority government

Well done the poms. You of all people have got to be happy with that

Originally Posted by Beoz (Post 11647719)

Global recession tiger. Didn't read the rest of your post. Hope it was good. :)

Originally Posted by paulry (Post 11648097)

However, there are silver linings: Grayling languishing in a Tory paradise for the next 5 years!! :thumbsup: I bet he's delighted! :rofl::rofl::rofl:

Originally Posted by Amazulu (Post 11648304)

Sad I know but why do socialists and lefties hate their country?

Originally Posted by OzTennis (Post 11648100)

As you said, you didn't read the rest of the analysis and it's hard to with your head in the sand. It said that the Tory policies of the 80's (belief in Supply sided economics, stimulating growth with too much credit and tax cuts for the wealthy, entering the ERM to try to control sterling, spending billions to prop up sterling after it entered the ERM, double digit inflation/interest rates blah, blah) created the recession.

I retire from trying to reason and use evidence to refute claims from the G Khan wing of the spectrum.:rofl: