If you voted Tory how do you feel about 'austerity is over'?

[Boynamedsue]

I keep hearing that May has told MPs that austerity is over, that it isn't what the people want. But isn't that what tory voters voted for? And are you not a bit annoyed by the backtracking?

I hold my hands up as a massive lefty and if the vote had gone the other way and labour had turned around and decided that, actually, austerity was the way forward, I'd be pretty pissed. I'm just wondering why there is do little reaction.

I promise I'm not being goady, I'm genuinely interested

Out2pasture

Re your “My experience is that no matter which party is in power there is no change. After all the amount of money they have to play with is always the same. They might spread the cash in slightly different ways but there is never enough to make a difference. Smoke and mirrors.”

Unfortunately the money is not the same re how much the UK government spends on one side of the balance sheet, and on the other side what it brings in via taxes from the private sector (businesses) or borrows to make up the difference.

Which is why in 2010 we had this huge government budget deficit in the first place, requiring corrective action.

What socialist governments forget is that if not to increase government debt, businesses need to be encouraged to grow and hire, and there is no god given right for companies/jobs to exist to create SUSTAINABLE growth as opposed to UNSUSTAINABLE government cheque book growth

As sooner than later when they grow the State (spending) significantly higher than tax revenues coming in, markets and investors seeing a lemon of a country economic model, price in the ‘extra risk’, initially raising interest rates paid by governments/tax payers.

In Greece they had a much larger State and were not business friendly, so as businesses did not cover the cost of the State, they ended paying up to 16% interest rates on their government bonds, before interest from investors dried up altogether, and they needed a financial bail out with the IMF and EU telling them to slash public spending significantly.

Under Corbyn and McDonnell who detest businesses and ‘profits’, they are basing their whole cunning economic plan to not only fund CURRENT annual UK spending, but also massively increase the size of the UK State AGAIN – on imposing the highest taxes on UK companies since the 1970’s – clearly with it not occurring to them, that businesses under Marxist policies will contract and shed jobs, not invest and hire more, cutting the taxes funding Corbyn and McDonnell’s spending promises.

Similar to the McDonnell targeted 5% of UK ‘rich’ on over £80k, already paying far more taxes under this government than under Labour – apparently unlike in France when they tried more penal taxes – they will be paying even more taxes under Labour, not contracting or leaving the country, before France realised their mistake to late, and reduced them again.

So not unlike New Labour who raised taxes from everyone in their first 7-years, we are all meant to believe that under Corbyn, taxes won’t rise for everyone to make up the costs of annual tuition fee and wipe out all debt promises, nationalisation of the post, electricity, rail and gas industries – and god knows what else is in that manifesto.

Bright international government bond investors currently funding the UK’s current near £1.9trillion of national debt, currently expecting both a UK balanced economy and a plan to wipe out the UK budget deficit to limit their investment ‘risk’ – and so accept 1.25% UK interest on 10-year bonds – will be happy to fund this new Corbyn and McDonnel La La Land ‘tax high, spend badly’ experiment as current interest rates. Not.

This year the UK will pay £48 billion of interest (from what could be spent on services) to bond investors on the current national debt, think how much that could cost us later as markets price in turbo charged additional Labour borrowing, and an economic model based on penal taxes.

Austerity isn't necessary. National budgets are not the same as household budgets. We will not agree. Have you got any concept of the issues the DUP have caused in NI? They should be facing criminal charges. It is not just Sinn Fein who are not happy with them.

DoctorDonnaNoble

Re your "austerity isn't necessary and National Budgets are not the same as household ones"

Governments running annual Budget Deficits, I agree, is not quite the same as household budgets, as unfortunately governments cannot be legally accountable for their national over spending screw ups, which allows them to write cheque bribes to get elected, with our own money – and then walk away afterwards with their pensions intact, unlike households.

In 1997 the Conservatives handed over to Labour £400 billion of National Debt, and previous budgets that would balance the UKs tax receipts/spending books by around 2001, as it did,

But by 2010 Labour borrowing billions more well before the crash to supplement their banking/credit boom tax receipts, handed back £1 trillion of National Debt, the public sector annual budgets stuffed with PFI bad debts- while projecting a £167 billion plus annual overspend from 2010 – so where DID all the money go?

No competent household I know would get into that state, and disingenuously blame ‘Tory austerity’ for trying to sort that lot out.

But its not just the £1.9 trillion of National Debt we should be worried about, increasing annually by the annual budget overspend few want cut, and currently £46 billion of annual interest.

UK Pensions are mainly UNFUNDED, which means the State/taxpayer pays them out of annual budgets on demand, and with the ‘baby boomers’ now retiring, this will be an increased drain on annual government spending.

So what are the UK unfunded pension Liabilities?

The last time I saw the UK State Pension liability, it was £3.8 trillion.

The last time I saw the UK government workers Pension Liability it was £1.5 trillion.

So with the National Debt, that is currently £7.2 trillion of UK liabilities that has to be paid back by someone from now on.

(Think about that when Corbyn/McDonnell the investment experts, say they want to INCREASE all those liabilities, by paying for, and annually supporting, the blowing of an undetailed £250 billion of new borrowing, establishing a UK Government Investment Bank, Nationalise electricity, rail, gas and mail, and create 1 million more ‘decent’ paying government jobs etc.)

And with it, the associated pension liability.