How Sez Sees It

Here is the link to the article about all this: http://www.guardian.co.uk/business/2011/nov/16/osborne-deficit-uk-economy-growth The point I want to quickly focus on is the lack of jobs and the struggles of the 1m young people out of work. In the past when there have been recessions or times of hardship the people and government have turned to the public sector to help out.  After all in times of hardship it is the public services that people most need.  More jobs were created so that meant more people could find work and that meant that more money could be spent by more people.  In a short period of time unemployment figures dropped and the economy strengthened with the increase in spending power of more people. What are the current government doing?  Cutting public sector jobs.  This doesn't help the ecomony and will drag it down further.  Create more jobs so that more people can be helped by the public sector and then some of these 1m unemployed ...

Sorry, had a busy day yesterday so could not comment. Inflation according to the Consumer Price Index (SPI) is up at 5.2% for September as compared to 4.5% for the month before.   This is a higher level than even September 2008 when the economic crisis hit.   The CPI was set in 1997 and there has never yet been a higher level than then, but this current level is still a subject for concern. Similarly the Retail Price Index (RPI) is also up from 5.2% to 5.6%.   This is the highest since June 1991!   If this doesn’t mean much to you the CPI is an indication of prices of everyday items people like you and I buy in the supermarket and the RPI is an indication of mortgages, etc. Gideon’s plans are obviously not working as the inflation shows a lack of confidence by consumers.   This is still not helped by the high prices set by foreign oil and gas companies.   Trouble is we are reliant on them as 20 years ago we had our own supplies in the North Sea…these go...

So Gideon (George Osborne) has announced his plans for small businesses at the Tory Conference.  The whole thing just reaks of the sort of trouble we had with sub prime. Basically the tax payer (you and I) will pay bonds that will help small businesses financially.  They will then use this to secure with the banks.  Now the one big problem is that the majority of small businesses fail in the first six months and they only borrow to start up the business (in the majority of cases) so if they fail they will take the money with them. This will get us out of recession...apparently.