well... they gotta make cuts because of the problems labour caused again.
Really? I thought that was caused by the fat cat businessmen and bankers betting huge amounts of money in what turned out to be worthless investments.
The cause is also a worldwide issue, not limited to the UK as with previous issues. Many countries banks invested heavily including Iceland, Japan, France and America.
A Tory government wouldn't have done any better and have done a lot worse since. We are barely bumping along the bottom at the moment.
no, the banking sector didnt cause the hole that labour left. Labour threw money about all over the place. Just look how many wasted public sector posts they created.
The goverment debt isnt all down to the banks
I certainly agree Labour spent tons, too much. But from the point of 1998 the public sector was a shambles, the NHS was disgraceful. That isn't to say they spent above their means. They certainly did, they were guilty of being overly optimistic on growth figures just like any other government in my memory has. The problem was the growth was built on sand.
The general thinking of nearly every single Western economy throughout the Labour government was that growth, any kind of growth, was all that was needed. It wasn't any worry if you run up a debt if you were growing, because you'd eventually be able to pay off the debt because of the extra tax revenue due to growth. The problem, of course, is that growth in the public sector not backed up by the private sector causes exactly the problem we are having now.
Thing is though, the amount of cuts that are taking place right now are widely being forecast to cause just the thing everyone fears. A stagnation of growth or even recession. Cuts definitely have to be made, its just whether or not you take a longer view or shorter view.
Either way we're all in the sh*t.
