[bomb #21]

UK inflation jumps to 3% in April

"the main drivers of price growth were fuel and food costs", say some analysts.

http://news.bbc.co.uk/1/hi/business/7397850.stm

Bad news updates as and when. & for anyone requiring a debating angle, how about "is the current administration incompetent when it comes to basic economics?"? While I don't have any economics qualifications myself, I definitely remember thinking "won't that make some people worse off?" when the 10p tax rate abolition was first mooted. I can't imagine why the same thought didn't occur to Gordon Brown.

[BlackSpike]

Originally Posted by bomb #21

UK inflation jumps to 3% in April

"the main drivers of price growth were fuel and food costs", say some analysts.

http://news.bbc.co.uk/1/hi/business/7397850.stm

Bad news updates as and when. & for anyone requiring a debating angle, how about "is the current administration incompetent when it comes to basic economics?"? While I don't have any economics qualifications myself, I definitely remember thinking "won't that make some people worse off?" when the 10p tax rate abolition was first mooted. I can't imagine why the same thought didn't occur to Gordon Brown.

Gordon Brown, after being Chancellor of The Exchequer for ten years, knew exactly what effects the 10p tax change would have, including the 5.3 million people left worse off.
Maybe he thought no-one would notice? Or not enough voters would care?

Gordon and chums, despite filling their ranks with PR croneys, seem to have trouble presenting a good image to the press, who control more votes than anyone likes to think.

The UK Government can do little in the short-to-medium term about food prices.
Fuel, on the other hand, is ENTIRELY their responsibility, as over 70% of the retail price is tax. Want lower prices? Lower the tax.

[bomb #21]

Originally Posted by BlackSpike

Gordon Brown, after being Chancellor of The Exchequer for ten years, knew exactly what effects the 10p tax change would have, including the 5.3 million people left worse off.
Maybe he thought no-one would notice? Or not enough voters would care? ...

Of course the thought that someone of his experience might not have foreseen the effects is ... unthinkable.

But as to #s of voters ... the effective base rate reduction (22% to 20) benefits far more than 5.3 million, so on paper that's a vote winner. The drawback is that the minority who are "worse off" are coincidentally those already tightrope-walking the poverty line, one assumes.

Who'd have thought it from a (now they've dropped the "New" for good, presumably) Labour government?

[lighthouse]

What's worse about this impending Recession than any previous ones is now we don't have a Gold reserve, so the very Basis for our entire Economy is no longer in our control.

Interestingly - although the economically worse off might indeed be less well off than before, many of them will know what this thing called 'Community' is as some will remember previous Recessions and how People helped each other through them. They'll also know how to cope without Money as that is how they have lived anyway. Those who don't will suddnly find that their 'buy anything and everything' lifestyle won't amount to much when there is less Money for any of it. It'll be like "Gosh, you mean I have to ask/give assistance - whatever - to someone?"

[Farmgirl22]

Obviously I'm not from the UK, but this sounds eerily familiar. I'm sorry.

[BlackSpike]

Originally Posted by bomb #21

Of course the thought that someone of his experience might not have foreseen the effects is ... unthinkable.

But as to #s of voters ... the effective base rate reduction (22% to 20) benefits far more than 5.3 million, so on paper that's a vote winner. The drawback is that the minority who are "worse off" are coincidentally those already tightrope-walking the poverty line, one assumes.

Who'd have thought it from a (now they've dropped the "New" for good, presumably) Labour government?

Well, if the leader of the Labour Party thought that more people would care about their own pockets and less about the pockets of some of the poorest people, and still went ahead with it, then he deserves everything he gets.
Unfortunately, the people that will suffer from both his financial decisions and the likelihood of the Tories winning the next election do not derve what they are going to get (the poor getting poorer).

Lighthouse: You are not suggesting that robbing the poor to pay the rich will be good for the poor are you?
While I agree that rebuilding Communities would be a good idea, and maybe it will be a (slim) silver lining on this Dark Cloud, it would have been nice to see it achieved by a more equitable method.

[Blackmirror]

My son is affected by the 10p tax rate
He works so hard .. but being single and living at home doesnt qualify for any help i think
He has to work overtime to make ends meet now !!!!!!!!

[Bastiat]

Originally Posted by Farmgirl22

Obviously I'm not from the UK, but this sounds eerily familiar. I'm sorry.

So goes the American economy so goes the world. Give it 10 months, with a new president, and the economy will do a 180.

BTW, my limey cohorts, I like that new mayor you have in London.

[Knotbored]

A tax increase of any type always stunts the economy, and a decrease stimulates an economy,but actually increases the funds going into the treasury. This is a message the conservatives of both USA political parties understands, but seems beyond the ability of liberal leaning folks. This is because anything benefiting sucessful folks is automatically suggested to harm the poor, which is hogwash-the poor are the first to benefit from a stimulated economy. Just the hint of higher taxes has stalled the present USA economy, and it seems a tax hike also is now hurting the UK economy.

[Farmgirl22]

Originally Posted by Bastiat

So goes the American economy so goes the world. Give it 10 months, with a new president, and the economy will do a 180.

Possibly, but that seems a bit arrogant to say.

I do hope you are right about the economy doing a 180 after the election. I hope it works out well for everyone.

I am glad to know that American politicians aren't the only ones who like to screw over the poor--which is odd, because it's not really a consolation. I do know that those guys don't do ANYTHING without a very methodical approach--they know all of the possible outcomes...it just seems that too many times they simply don't care. The rich are the ones paying most of their wages, so it's the rich they coddle.

[bomb #21]

Originally Posted by Bastiat

So goes the American economy so goes the world. Give it 10 months, with a new president, and the economy will do a 180.

BTW, my limey cohorts, I like that new mayor you have in London.

Crikey, that's a bit arrogant.



Do you mean the US economy, or (/and as a consequence) the global economy, or (/and as a consequence) the UK economy?

However economically-savvy Hillary ( ) is or isn't, our current administration's still "capable" of screwing our economy independently, if recent events are anything to go by.

Of course I hope you're right about the 180 -- which is obviously a strange thing for a "liberal" to say.

[bomb #21]

Originally Posted by Farmgirl

Possibly, but that seems a bit arrogant to say.

I do hope you are right about the economy doing a 180 after the election. I hope it works out well for everyone.

I am glad to know that American politicians aren't the only ones who like to screw over the poor--which is odd, because it's not really a consolation. I do know that those guys don't do ANYTHING without a very methodical approach--they know all of the possible outcomes...it just seems that too many times they simply don't care. The rich are the ones paying most of their wages, so it's the rich they coddle.

Personally I don't believe any pols actually take pleasure from screwing over the poor -- that would be a bit ... sadistic.

FWIW, when Tony Blair came to power in 97, his party -- well, theoretically his party -- had spent 18 years in the wilderness. His theme tune was "Things Can Only Get Better", and ... what goes up must come down. Pretty soon Gordon Brown will need to come up with a modern-day version of John Major's (PM 90-97) catchphrase -- "if it isn't hurting, it isn't working".

[bomb #21]

More recent "UK economy" news items.

1. Repossession orders climb

"... the number of orders made by the courts in England and Wales at an early stage of the repossession process rose 17% in the first quarter of 2008."

http://news.bbc.co.uk/1/hi/business/7391772.stm

2. UK house prices in 1% annual fall

"Prices fell by 1.1% in April, the sixth monthly decline in a row"

http://news.bbc.co.uk/1/hi/business/7374730.stm

(not necessarily a bad thing for Mr & Mrs Average's POV, but still consistent with "the economy is on a down")

[bomb #21]

This just in!

Gordon Brown: "I can save economy again".

Which is a bit -- my understanding was that it was fairly buoyant when he took charge.

Asked if he should stay in his job he said: "There are many people who could take over but I think I can steer this economy through difficult times."

Surely the "correct" answer to that question is "of course I should stay, I'm the best person for the job"?

Gordon's teetering on a crisis of confidence, methinks.

[bomb #21]

Originally Posted by Blackmirror

My son is affected by the 10p tax rate
He works so hard .. but being single and living at home doesnt qualify for any help i think
He has to work overtime to make ends meet now !!!!!!!!

Really? AFAI knew, the worst it would affect would be £4/week. Did they get that wrong too?

No bad news today ... as yet.