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Public Spending Cuts Question1 #65955 Danger that cuts too soon and too severe may increase unemployment, benefits payments, and mortgage defaults, thus endangering the recovery from recession and also stability of banks.

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UK economic problems »UK economic problemsUK 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

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Government Spending »Government SpendingGovernment Spending☜☜FFB597

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Budget deficit »Budget deficitBudget 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

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Public Spending CutsPublic Spending Cuts☜Danger that cuts too soon and too severe may increase unemployment, benefits payments, and mortgage defaults, thus endangering the recovery from recession and also stability of banks. ☜FFB597

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Entrée par: Richard Lawson
NodeID: #65955
Node type: Issue
Date d'entrée (GMT): 6/13/2010 4:30:00 PM
Date de la dernière modification (Heure GMT): 6/13/2010 4:30:00 PM
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