Shiplyopidomi |
07-19-2012 05:51 PM |
Quote:
Even with zero stimulus, the deficit will rise. What people don't understand is that money is a little like energy... you cannot destroy it, it just moves around. If you stop stimulus, the money just goes somewhere else.
The government needs to try and encourage it into the parts of the economy where it's most needed. The 'free' market actually doesn't always do that effectively.
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Now, Zoo, I would agree on the whole principle of investing to fuel growth, but you see, the UK however got a slight problem. It seems that the guys before Cameron must've done something very very wrong... They, who were stimulating and stimulating... must have stimulated the wrong horses.
The UK's budget deficit is a beauty. It's right up there with class company: http://www.datosmacro.com/en/deficit i.e. right behind Ireland, Greece and Spain.
Maybe the UK should stimulate the economy again.
...and ask for a bailout in a year or two.
--- Post Update ---
Ah looky looky: http://www.telegraph.co.uk/news/poli...ntil-2020.html
Looks like we're in for the long run. I'm afraid Zed is right.
The economy cannot be saved through stimulus anymore. It's too late for that.
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