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The Paradox of Thrift

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    The Paradox of Thrift

    After Christmas lots of retailers are going to go bust, having a knock on effect all the way up their supply chains.

    Meanwhile those still gainfully employed will further reign in their spending in an effort to either pay down their debts or to save, because they fear for their own jobs and have little or no equity available in their continually devaluing house, if by some miracle they were able to sell it. Then the cycle repeats itself again and again.

    Deflation will eventually follow and when demand for goods and services falls further because of consumer expectation of even lower prices, the cycle continues to repeat, but to an even greater extent than before.

    So, the question to the esteemed panel is: How do we get ourselves out of this mess?

    Should the government be firing up the printing presses? Or should we be reliant on a West Midlands based search engine that will overtake Google any day now and start paying billions of pounds in tax revenues to HMG to bail us out of this mess?

    (Note: Houses in CyberToryShire continue to appreciate in value and are entirely unaffected by the current financial crisis.)
    ǝןqqıʍ

    #2
    We must let things take their course. HMG have fouled up through overtaxing us and keeping interest rates too high for too long. Only when people are confident in their futures will they start spending on non-essential goods. This will take a year or so and by then we will have a government determined to be good housekeepers. The days of reckless spending and waste will be over until the next Labour government, in about 20 years time.

    Comment


      #3
      The government should fire up a small number of their presses. The future of the world depends on it

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        #4
        Spend, Spend, Spend (same as usual with my wife!)

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          #5
          Originally posted by KentPhilip View Post
          The government should fire up a small number of their presses. The future of the world depends on it
          No it doesn't. The future of some Civil Servants, and of some pet schemes of Labour will depend on it. Get rid of the Civil Servants and the schemes, and the Govt. wont need to take as much tax to pay for them. Thus taxes can be cut and people will spend more.
          When money ceases to be the tool by which men deal with one another, then men become the tools of men. Blood, whips and guns--or dollars. Take your choice - Ayn Rand, Atlas.

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            #6
            Originally posted by deano View Post
            No it doesn't. The future of some Civil Servants, and of some pet schemes of Labour will depend on it. Get rid of the Civil Servants and the schemes, and the Govt. wont need to take as much tax to pay for them. Thus taxes can be cut and people will spend more.

            I think you've just defined 'fiscal prudence'. Please forward your remarks to Mr G Brown.
            And what exactly is wrong with an "ad hominem" argument? Dodgy Agent, 16-5-2014

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              #7
              Plan B - wheelbarrows.

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                #8
                Originally posted by Archangel View Post
                Spend, Spend, Spend (same as usual with my wife!)

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                  #9
                  Originally posted by Doggy Styles View Post
                  Plan B - wheelbarrows.
                  Indeed - the printing presses may well send us towards hyperinflation.

                  Si posse, recte, si non, quocumque modo rem

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