Miliband fails to learn Labour spending lesson

TSC :o :o

So very very true.

Actually many of the Coalition cuts will have some impact on the more affluent. Most higher education students are middle-class and it's the middle classes who tend to use libraries. Plus cutting child benefit to the more affluent and keeping the tax increase for the most wealthy.

It's difficult to see what else they could have done given the wealthy aren't big consumers of public services (they just pay for them).

The view that Labour cuts would have impacted the rich and avoided disadvantaging the poor is preposterous. Seriously, what could you "cut" and really impact the rich? Rich people don't rely as much on state expenditure as poor people (fairly obviously). Therefore it was never going to impact them was it? Sometimes, the media's ability to state the frighteningly obvious makes my brain bleed.

I do find it faintly amusing that Ed Balls is back in town, banging on about the evil bankers when he was the biggest brown nose before the financial crisis. In fact, he was quite a regular at the industry dinners, telling the assembled financiers what a wonderful asset they were to the country.

ah newwave, you really are a typically rabid Labourite.

Not everyone who has sussed what New Labour is about is a Tory! Silly girl. Rue the day you lost Robin Cook, John Smith, Mo Mowlam - with them went the valour of Labour as was. Brown should have stuck to his old fashioned ways, by playing up to Glorious Leader Blair he went down the New Labour route and that was that.

ttosca

Spot on although the Tories on here wont agree, they would rather hang on to their comfort blanket which is "it's all Labours fault".

b KingofHighVis-

"Of course financial crisis was a global problem, but this just served to highlight those economies that were living on credit. Many economies have not been hugely effected and are now continuing to show healthy growth. At the end of the day, the last government failed to manage the economy properly."

The financial situation we find ourselves in is neither the fault of the Tories nor New Labour - except insofar as New Labour deregulated the financial sector.

It is the banking crisis which has caused our deficit and debt to skyrocket. During the New Labour govt. and before the banking crisis, the UK deficit as percentage of GDP was at 3% - this is about average for the EU. After the banking crisis, it shot up to over 11%.

The financial crisis also caused a recession, leading to a loss of tax receipts, and putting thousands of people out of work and on welfare.

However much some people dislike New Labour 'profligacy' in public spending, it is not, and never was, the cause the budget situation.

You're right that economies which relied on credit were more vulnerable. In order to keep the economy going, consumers had to be given credit to keep consuming and not riot since their standard of living would have otherwise dropped dramatically. The fact is that wages in real terms have remained pretty much flat since the early 1980s. At the same time, the cost of living has shot up dramatically, as has wealth inequality.

The economies which suffered the most were also those which had the most deregulated financial sector: i.e. The US and UK. UK faired even worse because of it is so highly dependent on finance to bring in tax receipts, whereas the US still actually manufactures stuff.

I wonder whether our concerns over cuts when times are bad might in the longer term discourage governments from spending when times are good?

If a government expects to be in power over a 12 year period, say, isn't there a fair chance that during those 12 years, at some point there will be more money available to put into valuable projects, and at some point there will be less money available for those projects. Does the opprobrium caused when projects are not funded outweigh the applause when projects are funded in good times?

Robyn

"I think assuming that just because someone is anti the current cuts means that they think Labour had it spot on is rather simplistic"

Exactly, spot on.

I think assuming that just because someone is anti the current cuts means that they think Labour had it spot on is rather simplistic. Also for many it's not about the amount which is cut but where it is cut from.

You prove my point

When the global banking crisis came - the UK was highly exposed. We had to pay heavily to bail out the banks, plus we lost a large chunk of tax revenue.

Which is what I said, he should have had his foot on the bankers necks. He did not however cause the global financial collapse and his actions helped averted a far larger one, actions which Gideon opposed.

I would point out that Gideon supported GB in the matter of banking regulation and "light touch". His views in 2007 on the Celtic Tiger economy does not auger well for his stewardship of the UK economy.

moondog

Do you have or have you ever have had the ability to post a coherent reply to any post.

I disagree with the right wing contingent on here but at least Jack, Comp, Chil, LFN and SWC and others can put together a view or opinion which can be attacked or debated or even at times agreed with.

You however appear to be unable to do any of those things, I suspect if you had an intelligent thought it would get very lonely.

"Brown needs to be castigated for not keeping their gambling under control"

But newwave - he did much more than that. He actively encouraged the rampant growth of the financial sector (at the expense of other sectors including manufacturing).

When the global banking crisis came - the UK was highly exposed. We had to pay heavily to bail out the banks, plus we lost a large chunk of tax revenue.

And Mr King didn't help matters with his low interest rates - which fuelled the vast increase in personal debt.

Yes.
Remember SWC you are nowt but feline ordure on the sole of the proletariat's BOOT!!!!!

SWC you are pathetic,

Mervyn King agreed it was the fault of the Bankers although Brown needs to be castigated for not keeping their gambling under control. Did Brown cause the collapse of Lehman Brothers which precipitated the financial crash or the USA sub prime mortgage market, of course he did not.

Brown also caused the recessions in other countries as well

Keep on believing the Tory bullshit because that is all it is BULLSHIT

Sounds as though you think the deficit is labour's fault even though George Osborne (when pressed) and Mervyn King agree it was the fault of the bankers. The George Osborne one is specially good to watch - giving evidence to the treasury select committee, clip available on youtube here:

Remember it was far right Bush that was in power in the US when the financial crisis hit.

If labour hadn't been in power for 13 years we wouldn't have public services to pull the plug on to bail out the banks. Has anyone noticed that their schools / hospitals / public services have got better over the last decade?

Wow, didn't it get nasty here. I don't think that the Tories are targeting only the poor. I do think that everyone is going to be hit and I actually think is fair. Unfortunately, many people just expect things for free and it has to stop sometime. For example, the students protest for university fees. Most students from other countries have to contribute to their fees and why not? Sadly the Tories did a poor job in communicating how the fee structure works. Once I understood it I actually think it to be very reasonable. I aslo think that the very poor will still be ok but middle income earners will be hit the hardest.

"tax bank bonuses to the hilt (and if they fuck off so be it)".

Once they have gone is it ok to cut public services to fill the tax gap?

Just trying to work out what your priority is here. Maximising total tax income or punishing bankers?

NG2

I am tired of hearing this all the time. OK, so if you have to make reductions, name me one cut which does not affect the poor AND will actually make a difference to the deficit?

Cancel Trident, raise taxes on the rich, make far more effort to persue tax avoiders, shut all the loopholes that are used to dodge paying tax, Tax bankers bonuses to the hilt (and if they fuck off so be it) after all call me Dave said no bailed out banker will get a bonus above £2600 (lying shit). Dont get involved in anymore wars.

BTW fed up with it or not it is fact that the Tories screw the poor, always have and always will.