The recovery appears to be continuing!!

[sten_super]

I'm interested in how Keynesians really believe they can solve recessions by spending more in down turns, then cutting in the boom.

The main equation for aggregate demand is: AD = C + I + G + (X-M) G being government spending. According to Keynes, when one or more of these decrease, aggregate demand decreases and causes an economic slow down. If during the boom, we cut G, we reduce aggregate demand and alas repeat the cycle.

If we are to borrow more, what if our creditors decide to no longer lend? Or what if we borrow more and see no economic recovery; we'll have more debt and still no growth. These factors play a major role in our gilt yields, and we only have to look at Greece to see what happens when yields spike.

The idea that government spending can be used to mitigate the worst of recessions is not exclusively Keynesian - Hayek also espoused investment, he just preferred it to come from the private sector if possible. The justification is that you increase G when the other components of demand (consumer spending, private investment and trade) are experiencing a downturn to bolster aggregate demand, and then withdraw this when the other components are increasing. As a result you can (theoretically) stablise the growth path of aggregate demand. The idea is that across the economic cycle as a whole government expenditure is used to balance out aggregate demand.

 

[glasfryn]

yes ,yes very good but when will have to stop working people using food banks
Oh and when will we able to put the old in nursing homes and know they will be able to survive at least one week
Oh and when will we have police and social working who will have the backbone to stick their foot in the door to save abused and neglected children
Oh and also when will we see the end of short term working contracts
soonest we get these greedy *******s out of government the better
thatcherism and blairism(watered down bloody tory) still lives


I am afraid to say

 

[meeching gull]

yes ,yes very good but when will have to stop working people using food banks
Oh and when will we able to put the old in nursing homes and know they will be able to survive at least one week
Oh and when will we have police and social working who will have the backbone to stick their foot in the door to save abused and neglected children
Oh and also when will we see the end of short term working contracts
blairism still lives



I am afraid to say

I never get involved in political discussions but very much THIS^^^^

 

[Westdene Seagull]

Getting it right!!!!

Perhaps you should have included the following quote:-

David Freeman from the ONS gave BBC News a breakdown of the figures. He said the number of part-time workers had reached a new high with, "nearly one in five people working part-time because they can't find a full-time job."


I believe there are 8m in part time work and therefore 1.75m are doing part time work when they really need full time work but of course the jobs aren't there. Add to that the fact that a lot of people in full time work haven't had a pay rise of note for several years and anything they did get was way below inflation.

Agreed, my partner is in part time work because she couldn't find full time work. That said, it's a hell of a lot better than when she was on JSA !!!!!! We can knock the number of part time jobs that have been created but it's still better than no job creation.

 

[Ernest]

yes ,yes very good but when will have to stop working people using food banks
Oh and when will we able to put the old in nursing homes and know they will be able to survive at least one week
Oh and when will we have police and social working who will have the backbone to stick their foot in the door to save abused and neglected children
Oh and also when will we see the end of short term working contracts
soonest we get these greedy *******s out of government the better
thatcherism and blairism(watered down bloody tory) still lives


I am afraid to say

Very true, it is a recovery as such for the wealthy few but not for the vast majority on frozen salaries or zero hour contracts

 

[Vegas Seagull]

Very true, it is a recovery as such for the wealthy few but not for the vast majority on frozen salaries or zero hour contracts

Have I missed the law which states you have to work for someone else, not yourself?

 

[Uncle C]

Very true, it is a recovery as such for the wealthy few but not for the vast majority on frozen salaries or zero hour contracts

Would you rather tread water or sink?

 

[vegster]

It's a great time to be a tory businessman, virtually no unionisation, employment laws tipped in favour of the employer, a huge pool of unemployed people to offer a minimum wage to on a zero hours contract or better still, a 2 year contract which avoids all those nasty issues like sick pay, incremental holidays and bonuses.

 

[easynow]

And all I keep getting as a pop up ad on here is "The End Of Britain" forecasting a massive financial collapse

That money week article is absolute bullshit.

 

[Sam-]

Well I got a good job so meh.

 

[Seagull on the wing]

For some.

The number of people relying on food banks to survive has tripled over the last year, according to new figures.

The Trussell Trust, which runs 400 food banks across the UK, said it handed out supplies to more than 350,000 people between April and September this year.

A third of those being helped were children, and a third needed food following a delay in the payment of benefits.

The government said the rise was down to the greater number of food banks.


Great answer. There are more food banks because more people need them. More people need them so there are more food banks.

Maybe a few do need the food banks...but many people THINK ...Free food...more money for my cheap booze and fags...

 

[Seagull on the wing]

It's a great time to be a tory businessman, virtually no unionisation, employment laws tipped in favour of the employer, a huge pool of unemployed people to offer a minimum wage to on a zero hours contract or better still, a 2 year contract which avoids all those nasty issues like sick pay, incremental holidays and bonuses.

Don't know what hat you've been hiding under....no unionisation....so the Royal Mail is not going on strike then...the Scottish power workers were threatening to strike...if you don't like your pay and conditions in the first place...why take the job then moan about it...

 

[Beach Hut]

Gideon has pulled one out the hat, I suspect the lefties hate it but get a life

 

[El Presidente]

This means absolutely nothing. June to August offers a huge amount of seasonal work from tourism to fruit picking.

Always more people in work during the summer. A non story.

You won't find any Brits stopping as low as fruit picking. That's what the East Europeans are for

 

[unklbrian]

Would be interested to know how many of those 18,000 back in work are on minimum wage and zero hours contracts.....

I was employed on a Zero hours contract,starting in June ...

Back on the jam roll since August tho

till November

 

[drew]

Maybe a few do need the food banks...but many people THINK ...Free food...more money for my cheap booze and fags...

Dumb statement with no factual substantiation.

 

[unklbrian]

Don't know what hat you've been hiding under....no unionisation....so the Royal Mail is not going on strike then...the Scottish power workers were threatening to strike...if you don't like your pay and conditions in the first place...why take the job then moan about it...

becuase if you dont take the job you will lose your job seekers allowance

can you see what the plan is now ?

 

[ThePompousPaladin]

Wealth still being 'redistributed' upwards.

 

[Seagull on the wing]

becuase if you dont take the job you will lose your job seekers allowance

can you see what the plan is now ?

(because!!) I see the plan OK thanks...I'm talking about people in jobs who are seeking to strike...BTW add the teachers to those going on strike...now tell me there is no unionisation.
The Royal Mail has it's share issues which most of the union members hold....and it wants to strike!! Good thinking Batman...foot,shoot,in the...comes to mind.

 

[Westdene Seagull]

Maybe a few do need the food banks...but many people THINK ...Free food...more money for my cheap booze and fags...

You clearly don't know how food banks work - you can't just rock up and claim free food !!!!