hutch0 (hutch0) wrote,

  • Location:
  • Mood:
  • Music:

just a small point...

Apparently one of the financial dangers we now face in this country is deflation, where consumers stop spending. Part of the Chancellor's raft of measures announced in his pre-Budget statement today was meant to combat deflation by getting us spending again.
Now, when Gordon was Chancellor he revelled in his reputation for prudence - ask him for money for stuff and he'd say no, because it was the prudent thing to do.
But when ordinary people are being prudent, because we're frankly terrified and we want to hang onto our money and buy cheap stuff, that's the wrong thing to do.
So it's vital for us to spend, even though the various governments and financial institutions have royally karked things up and everything's uncertain. But it's okay for him to refuse to spend. Which of these?

I may have overestimated Gordon's grip on things a few weeks ago. You'll all have realised long ago that I'm no expert, but to me the pre-Budget statement smacks of desperation, the nuclear option. Which gives me the scary impression that after this, there are no other plans.
  • Post a new comment


    default userpic

    Your reply will be screened

    Your IP address will be recorded 

    When you submit the form an invisible reCAPTCHA check will be performed.
    You must follow the Privacy Policy and Google Terms of use.