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Government Spending
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UK economic problems
UK economic problems☜UK GDP (2010) £1410 bn. National debt £850 bn, 60% of GDP. (Context: Japans debt is 194% of GDP, Italy is 100% of GDP). £107 bn is due to banks bailout 2009. Annual borrowing is 12% of GDP. 1/6th of borrowing is to service the National Debt.☜F1CEB7
■
Government Spending
Government Spending☜☜FFB597
↳
Benefits
Benefits ☜Problem of withdrawal of benefits when claimant finds work locks many people into unemployment, poverty and welfare dependancy. Can be addressed by Green Wage Subsidy, which also moves economy onto sustainable footing. http://bit.ly/9j66GI☜FFB597
↳
Budget deficit
Budget deficit☜UK budget deficit is high at 11% of GDP, but must be reduced carefully so as not to harm the vulnerable and endanger the recovery. The Governments aim of 20% through taxation and 80% through spending cuts is thought unbalanced by many economists.☜FFB597
↳
INFRASTRUCTURE INVESTMENT
INFRASTRUCTURE INVESTMENT☜Keynesian economists strongly advocate Government investment to meet the problems of recession. This does not necessarily have to be funded by more borrowing, as Quantitative Easing (QE) can generate the finance, provided a return on investment is expected.☜FFB597
↳
National Debt
National Debt☜☜FFB597
↳
Taxation
Taxation☜☜FFB597
↳
Waste and inefficiency
Waste and inefficiency☜Inherent in all organisations, potentially more in bureauracies. Must be addressed by feedback (suggesiton box) from workforce, who are most aware of inefficiencies. ☜FFB597
↳
White Elephants
White Elephants☜e.g. ID cards, Trident, Eurofighter, aircraft carriers, computerisation, road building. Potential savings iro £213 billion. ☜FFB597
□
Graph of this discussion
Graph of this discussion☜Click this to see the whole debate, excluding comments, in graphical form☜dcdcdc
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Richard Lawson
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Entry date (GMT):
6/13/2010 3:47:00 PM
Last edit date (GMT):
8/29/2012 8:17:00 AM
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