Quote:
Originally Posted by andrewb
Except most of our service sector isn't supplied better elsewhere. You're right though, our economy should be diverse.
Gayle makes a very good point. Credit should be used by business to finance cash flow problems, not cash shortages as it is often used by individuals. When credit is unavailable businesses can and will collapse. That's why it's so important to get credit moving again.
Banks have been allowed to lend, lend, lend, and have built up huge amounts of private debt. The government have spent 7 years borrowing more, more, more. That created a boom, now we have a bust. The governments solution to private sector over borrowing is public sector over borrowing. I don't subscribe to it. Japan did the same in the 90's and it took them over a decade to get out of it. Government borrowing £157bn is going to make our recession longer and deeper, due to far higher taxes in years to come.
What you do about it is a tricky question. My common sense says we need to live within our means, and realise we can't sustain spending in the way that many are accustomed to, as it is simply fuelled by debt. Sustaining what we're accustomed to, by government borrowing hundreds of billions of pounds, is in my opinion wrong. The government should be there to help its citizens yes, but at the same time it has to realise that the economy needs to go back to a sustainable level, so should be careful in the method used to help.
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Mmmmmmmmmm, what do I think more valuable for our country to possess?
Engineering, hi-tech industries, and manufacturing...or the ability to answer the telephone?
My, that's a hard one, especially when Hyndburn recently lost one of it's biggest employers, when Airtours/Thompsons decided to relocate their call centre elsewhere.