SamuelRSmith on 30 January 2009
| SciFiBoy said: so are you in favour of new labours economic policy regarding combating the downturn? or should the goverment do more to support income (cut taxes for the poorer workers) and force the banks to increase output (lending)? or should the government do nothing and hope the financial sector recovers by itself? |
I personally don't think the Government's gone far enough. IMHO, they should (temporarily, at least) nationalise all banks, and partake in sensible loaning until all of the banks' toxic assets are paid for.
In terms of cutting taxes, it's a terrible idea, imo. VAT is currently as low as it will go due to EU legislation. Also tax cuts can lead to problems in the future when the taxes need to be raised again, rebellion, political suicide, etc.
The financial sector would be able to recover by itself. It's already begun the slow process of healing itself, but that's the very problem, the fact that it's a very slow process.
