IMF want UK interest rates to drop to 0%

[Northstandite]

It's interesting that on a forum which tends to be heavily populated by pro Tory Thatcher apologists that this thread seems to have withered without major comment ? Maybe even they find this behavior too distasteful ? Even burger flippin' Timmy ?

Funny about perceptions.

I thought NSC was filled with Thatcher & Cameron haters,
longing for the salad days of:
James Callaghan, IMF bailout, Grunwick, 'high quality' products churned out at Leyland Longbridge, and poor management & all powerful shop stewards/convenors.

 

[sten_super]

one word: Portugal. very strict employment, growth f***ed (even before the current situation). couple years ago my company bailed out of the portugese operations and transfered everyone to the Spainish office because of the costs.

But you could equally quote Germany, where regulation is perceived as being worse than the UK, and economic growth is higher. Or Ireland, where employment terms have been loosened considerably but the economic situation is not good. That's the point - there's no correlation.

Incidentally, the World Bank publish a list of the 'ease of doing business' and the UK features very highly.
Ranking of economies - Doing Business - World Bank Group

Beecroft clearly has an agenda, but the key point needs to be considered - shouldn't you be able to sack ineffiecient, poor staff. again first hand experience, it took 3 months of "process" to sack someone who was (unfortunatly) way out of his depth in the job. it would have been better all round if that could have been wrapped up quickly.

i havent read it in detail, im sure it goes too far, but surely such matters should at least be considered? do you recruit someone for a new role, who might be unsuitable, or do you get current staff to cover work load? one costs say 30k, the other nothing.

There are surely ways around this without stripping employees of any rights to appeal dismissals (which is what Beecroft was proposing)? At my workplace all new employees sign fixed term 3-month contracts - at the end of that 3 months either party (the employer or the employee) is free to walk away if they want, or alternatively if both parties agree a permanent contract can be agreed.

While Beecroft's suggestions were extreme, he was clearly asked to propose something radical and did so; however I lost all respect for him yesterday, when he showed his true colours in attacking Cable.

 

[Hungry Joe]

But you could equally quote Germany, where regulation is perceived as being worse than the UK, and economic growth is higher. Or Ireland, where employment terms have been loosened considerably but the economic situation is not good. That's the point - there's no correlation.

Incidentally, the World Bank publish a list of the 'ease of doing business' and the UK features very highly.
Ranking of economies - Doing Business - World Bank Group




There are surely ways around this without stripping employees of any rights to appeal dismissals (which is what Beecroft was proposing)? At my workplace all new employees sign fixed term 3-month contracts - at the end of that 3 months either party (the employer or the employee) is free to walk away if they want, or alternatively if both parties agree a permanent contract can be agreed.

While Beecroft's suggestions were extreme, he was clearly asked to propose something radical and did so; however I lost all respect for him yesterday, when he showed his true colours in attacking Cable.

3 to 6 month probation contracts are standard practice in many businesses now. As such there is no need for loosening employment law any further. If you haven't worked out that someone is rubbish in 3 to 6 months then you probably shouldn't be in a management position in the first place.

 

[Uncle Spielberg]

Growth for first 1/4 worse than predicted - 0.3% not - 0.2%. Growth for the last 18 months - 0.2%. ITS NOT WORKING MR OSBOURNE !

 

[CorgiRegisteredFriend]

Growth for first 1/4 worse than predicted - 0.3% not - 0.2%. Growth for the last 18 months - 0.2%. ITS NOT WORKING MR OSBOURNE !

Its not difficult to work it out though.

If you freeze peoples pay, increase pension contributions, reduce or take away child benefit etc etc etc with a backdrop of 3% + inflation then purchasing power is reduced. Less money = less spending= a weakening economy. Even mortage rates are going up and thats despite a base rate of 0.5%!

 

[Herr Tubthumper]

It's interesting that on a forum which tends to be heavily populated by pro Tory Thatcher apologists that this thread seems to have withered without major comment ? Maybe even they find this behavior too distasteful ? Even burger flippin' Timmy ?

You make a good point. I guess even some Tories are now doubting the competence of Cameron and especially Osborne. Our economy is stalling badly whilst other countries are showing modest growth. It's the same world economy out there for Germany, America and France as it is us. What's even more pathetic is Cameron's repeated "they gotta sort it out" calls to the Eurozone. He looks and sounds quite desperate. Why on earth does he think they will, or indeed need to, listen to him? They'll sort things for themselves, at a pace which suits themselves. After all Cameron did chose to stay out of it.

He looks a desperate man who is running out of ideas, check the way he is acting in PM's questions.

 

[Uncle Spielberg]

You make a good point. I guess even some Tories are now doubting the competence of Cameron and especially Osborne. Our economy is stalling badly whilst other countries are showing modest growth. It's the same world economy out there for Germany, America and France as it is us. What's even more pathetic is Cameron's repeated "they gotta sort it out" calls to the Eurozone. He looks and sounds quite desperate. Why on earth does he think they will, or indeed need to, listen to him? They'll sort things for themselves, at a pace which suits themselves. After all Cameron did chose to stay out of it.

He looks a desperate man who is running out of ideas, check the way he is acting in PM's questions.

Cameron has come across as a complete TOOL. I wonder what the Euro prime ministers say about him when he has gone to the toilet at their numerous summits which seem to me just an excuse for a jolly and some decent grub as sod all seems to ever get done or agreed. He is hardly in a position to preach about the Euro promoting growth as he has killed the patient in the UK. TOSSER !

 

[Lethargic]

You make a good point. I guess even some Tories are now doubting the competence of Cameron and especially Osborne. Our economy is stalling badly whilst other countries are showing modest growth. It's the same world economy out there for Germany, America and France as it is us. What's even more pathetic is Cameron's repeated "they gotta sort it out" calls to the Eurozone. He looks and sounds quite desperate. Why on earth does he think they will, or indeed need to, listen to him? They'll sort things for themselves, at a pace which suits themselves. After all Cameron did chose to stay out of it.

He looks a desperate man who is running out of ideas, check the way he is acting in PM's questions.

Agreed on all that except using the USA as an example, they are simply buying there way out with ever increasing debt. Businesses are now hammering the government on airport capacity and the affect it is already having on our economy another example of government indecision. None of us want more airplanes on our doorstep but we need to decide if we want to compete on the world stage or go back to farms and cottage industries.

 

[Uncle Spielberg]

This is by far the deepest and most prolonged recession this country has ever had.

Every previous recession we had got back to pre recession levels of growth by now, this recession we are still 4% off pre recession levels so the whole period of time will be at least 8-10 years.

We have had no growth whatsoever in the 2 years of the coalition which is in danger of plunging this country into a lost decade or lost decades. Sadly Osbourne does not get it.

The balance is not there and with no plans and no policies for growth he simply switched off the life support machine the country was on when he took over to show how hard he is and with overwhelming facts and data dropping on his desk daily that he alone is responsible for this and the double dip recession and his response ?, nothing, I will not change course.

 

[narly101]

I am not sure that the IMF did say that we should cut interest rates.

It commented that the UK has done well to cut the deficit and basically steady as she goes, for now.

But mindful that if growth does not return then the IMF might like to see a cut in interest rates and VAT to stimulate growth.

This. Thety actually praise what the government has done, but wary that the double-dip recesion is a warning that if it continues, the UK shoul dhave a plan B which could suggest a drop in both Taxes and Interest rates. Once again the media soundbites get the gist of the story all wrong. Don't believe everything you read in the headlines.