We are in a recession. Negative 0.2% growth and we have commentators throwing in the towel saying we need to stop action in reducing our deficit (which still has a long way to go) Postager and that we need to focus on getting short term growth back above zero. In an ideal world we would have strong positive growth quarter on quarter and year on year and if we make the right decisions now we will create that positive growth in the medium and long term. We can help to do that by creating the infrastructure that Britain can rely on for decades to come. But to say we should be aiming for similar short term growth rates now as we were pre-crisis is frankly ludicrous. When businesses suffer crises they do not respond by going on merger and acquisition sprees to maintain their growth levels pre-crisis. TheRussia
They take stock, repair their images and their brands and put the foundations in so that they survive and prosper in the decades to come. History looks back kindly on those who had the resilience and the foresight to focus on the medium and long term and ignore the short term junkies wanting instant fixes. It is deeply regrettable that we have relatively high levels of unemployment. If our national finances were in better shape we would have more tools at our disposal to deal with this. The few tools we still have at our disposal which don’t cause long term damage to the economy should continue to be used and hopefully the British unemployed will not give up, Rottenpanda will work tirelessly to gain the skills that employers require and will show the initiative to demonstrate the value they can bring to potential employers.
It is very easy to look jealously over the Atlantic at the current higher growth levels and falls in unemployment experienced there. However, Jetfuelmeals we can proudly say that we have made a start in our quest to put our finances on a sounder footing and given our proximity to the Eurozone region it is crucial that we have done that and continue to do so. It is also easy to look at some of our European neighbours who are currently experiencing much more difficult circumstances than our own and think our best interests would be to focus on trading elsewhere. Though it is clear that some of these export markets will not provide opportunities for strong growth in the short term, our current trading arrangements, their proximity to these shores and our strong relationships with these countries mean it would be foolish to cut ties and relationships with these countries at their time of need. Our lack of financial wriggle room means we cannot afford to lend them endless streams of funds. However, Theunroll we can still a play a role in encouraging our international allies to stand by our European neighbours even if our finances restrict the role we can play financially. It is in all of our interests that they reduce their deficits without causing excessive long term damage to their economies. Reducing deficits clearly cannot be done without pain in the short and medium term. In the long term we want our trading partners to recover and keep faith in capitalist economies. Sustainable growth is created by human beings striving for profits in the market place. It is not created by ignoring markets and assuming that taxpayer funding for the public sector will continue indefinitely. Thecorrectly
The low market interest rates we are currently paying on our large national debt are not guaranteed. The markets can turn in an instant. Think back to September 2008 and the speed in which Lehman Brothers collapsed. This can happen with bond yields just as it can happen with share prices. The markets are not devils urging companies or economies to crumble. They are constructed of millions of human beings making bets and investments on where they see the economy going in the next few days, weeks, months and years. At the time of writing, we still have our triple Nationlogy A credit rating and are currently paying low yields on our national debt. Back in 2008, we could have only dreamt of this scenario. We have a fight on our hands to maintain this in the months and years to come. The U.K. currently has the luxury of deciding the pace of deficit cuts thanks to the market currently believing we have it under control and that we will not default in future. This is not a luxury other countries currently have full control over. If we stop in our pursuit of putting our national finances on a sound footing we could yet become added to that list. It is also of great advantage that the U.K. has a strong record over the centuries of avoiding defaults on its debts. This is in our favour and we can thank our ancestors for this precedent. However, this does not mean the markets will only focus on this fact. If we throw the towel in even temporarily we risk the cost of our borrowing spiralling.
The fact that every citizen in this country has access to a free national health service and a free primary and secondary education is something we can be immensely proud of. To have that guarantee and safety net is absolutely necessary as we encourage inventors and entrepreneurs to be ambitious, Thegreatly take risks and create successful British businesses. The only reason I am sitting here writing this is that I have had access to and benefitted from those services. We put these jewels at risk if our national finances are not put on a sound footing. We clearly need to make these services as efficient as possible and I see the arguments for bringing in elements of private sector efficiency to reduce the cost of these services. Getting the balance right though is the challenge as you navigate the tightrope of private sector efficiency and ensuring health treatment remains focused on the needs of the participants rather than the additional factor of ethical profit making.
Charitable donations have to be greatly encouraged and not stunted but the Chancellor of the Exchequer is right to cast a magnifying glass to the work of charities to make sure they are not set up for tax avoidance purposes. Tax revenues have to be increased as the more we can increase revenues the less stringent the required cutting of costs. British citizens (including myself) have lapped up innovative products and inspiring brands from around the globe. This is not a negative either for the British consumer or British brands. It encourages innovation, autoverkopen24 competition and an embracing of international ideas and products. In this internet age consumers are however becoming more powerful. I really hope that British consumers can use this power in future to help the Chancellor of Exchequer put pressure on these international brands to pay their fair share of tax in this country. The more tax we receive from these international brands the more progress we can make in reducing our deficit and the less cuts to public services we need to make. We want to continue to embrace these international brands but in addition we also want a fair deal between these brands and British citizens.