[quote author=singlerider link=topic=46360.msg1377485#msg1377485 date=1312992656]
The balance of payments is a valid concern, something we should rightly be perturbed about but something that we can address by focusing on exporting high value products rather than trying to compete against China etc on mass produced stuff. They'll kill us all day on that shit, but we are more advanced in other areas and we need to use this to our advantage. Personally I think we still have a good engineering sector, we've got strong skills in some of the creative shit like computer games, if we can step those kinda things up a bit then maybe we can start to balance things out a bit. However, yes - the manufacturing sector is a little worrying as is our reliance on the financial sector.
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[quote author=singlerider link=topic=46360.msg1377485#msg1377485 date=1312992656]
What needs to happen is something to break that cycle. Ideally something to give a boost to businesses and people alike, something that increases confidence and spending.
The government can do this by enacting a large scale stimulus package that encourages growth, creates jobs and pumps money into the economy. Alternatively it can try and stimulate the economy by directly injecting money into it - quantitative easing (not without risks).
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I think these two points are linked.
I'm not in favour of "rolling the dice" by increasing public spending to give a temporary boost to the economy (and lets face it, growth will be difficult due to the fact that every other country in the entire world is also seeking growth, and it is impossible for them all to succeed. Assuming that we can't coerce companies and individuals with vast accumulated wealth to spend it).
The real focus should be on targeting spending on the sectors that will produce the most rewards. Sectors like video games (which has been criminally overlooked by both this and the last government in regards to tax breaks / subsidies), engineering et al should be encouraged to innovate (and the policies for encouraging innovation should be reviewed as most are lavish and ineffectual). But this is entirely possible to do whilst reducing the countries overall expenditure.
I also think that the real crux of the rioting problem is benefits. Not that people are getting them, but the fact that they are getting them for nothing. There is no sense of pride generated from receiving handouts, it just encourages reliance. Mandatory remedial (or skilled where possible) work for those that are claiming and able would do a lot to help remedy the culture of greed and reliance that we are currently cultivating.
The balance of payments is a valid concern, something we should rightly be perturbed about but something that we can address by focusing on exporting high value products rather than trying to compete against China etc on mass produced stuff. They'll kill us all day on that shit, but we are more advanced in other areas and we need to use this to our advantage. Personally I think we still have a good engineering sector, we've got strong skills in some of the creative shit like computer games, if we can step those kinda things up a bit then maybe we can start to balance things out a bit. However, yes - the manufacturing sector is a little worrying as is our reliance on the financial sector.
[/quote]
[quote author=singlerider link=topic=46360.msg1377485#msg1377485 date=1312992656]
What needs to happen is something to break that cycle. Ideally something to give a boost to businesses and people alike, something that increases confidence and spending.
The government can do this by enacting a large scale stimulus package that encourages growth, creates jobs and pumps money into the economy. Alternatively it can try and stimulate the economy by directly injecting money into it - quantitative easing (not without risks).
[/quote]
I think these two points are linked.
I'm not in favour of "rolling the dice" by increasing public spending to give a temporary boost to the economy (and lets face it, growth will be difficult due to the fact that every other country in the entire world is also seeking growth, and it is impossible for them all to succeed. Assuming that we can't coerce companies and individuals with vast accumulated wealth to spend it).
The real focus should be on targeting spending on the sectors that will produce the most rewards. Sectors like video games (which has been criminally overlooked by both this and the last government in regards to tax breaks / subsidies), engineering et al should be encouraged to innovate (and the policies for encouraging innovation should be reviewed as most are lavish and ineffectual). But this is entirely possible to do whilst reducing the countries overall expenditure.
I also think that the real crux of the rioting problem is benefits. Not that people are getting them, but the fact that they are getting them for nothing. There is no sense of pride generated from receiving handouts, it just encourages reliance. Mandatory remedial (or skilled where possible) work for those that are claiming and able would do a lot to help remedy the culture of greed and reliance that we are currently cultivating.