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The OECD predict the U.K. will have the biggest economic downturn and that is before brexit

(31 Posts)
Whitewavemark2 Thu 11-Jun-20 08:09:40

The OECD has predicted that the U.K. s downturn will be approximately 11.5% followed by France at 11.4%, Italy 11.3% Spain by 11.1%.

The OECD said that the task before these governments is immense and it will be a long haul back to levels before covid. In the UKs case our economy was stagnating anyway.

To add to our woes, if as is almost certain the U.K. has to impose a second lockdown as a result of a second wave this winter, then the downturn will rise to 14%. The Bank of England’s concur with the figures.

So if we add in the predicted hit that will occur by a hard Brexit then this government is well on the way to destroying our economy, our children’s/grandchildren’s prospects and our standard of living for many years to come. In fact we may never fully recover.

growstuff Fri 12-Jun-20 10:59:49

So why does the CBI want an extension GrannyGravy? Don't they know anything about business?

MaizieD Fri 12-Jun-20 13:02:56

I have read Murphy's blog (I read it every day), growstuff. The one you're referring to was very depressing. This obsession with debt is absurd. For a start, the goveernment owes a great deal of it to itself, as that is what QE was essentially. A great deal of the rest of it are peoples' savings; bonds and gilts held by pension funds or individuals and money people put into National Savings accounts. With interest rates so low the cost to the government is negligible and it is particularly valuable to the people and institutions which have money invested in them as they are assured that they will get back their principal, even if slightly eroded by inflation. Unlike investing in shares which, famously, can go down as well as up in value and may have no value at all if the company goes bust.

Raising taxes just returns money to the treasury and leaves people with less to spend in the economy. It has no logic to it.

We bang on about a country's economy not being like a household economy, with a finite amount of money available. Perhaps it should also be made clear that a country isn't a business, either, and doesn't have to make a profit or even 'balance its budget' when it has the power to issue as much money as it needs.

Murphy always said that Labour under Corbyn didn't 'quite' get it in relation to MMT and government debt, but at least it was going in the right direction with its plans to invest in the real economy.

Whitewavemark2 Fri 12-Jun-20 13:35:48

“Millions voted for Brexit because they wanted tighter border controls.
They are getting the opposite. Fewer checks, but more paperwork.
A heightened risk of smuggling, people trafficking and illegal immigration.
However you voted, Brexit is lose, lose.“

vegansrock Fri 12-Jun-20 13:41:52

The EUs position is clear they want Johnson to stick to the agreement he said was oven ready and not try to wheedle further concessions. They haven’t changed their position it’s the UK who keep demanding extras. Johnson wants all the benefits of the single market and none of the obligations. That’s not going to happen.

MaizieD Fri 12-Jun-20 13:43:52

EU member states won't reciprocate. They're ready for us with infrastructure and personnel... They don't want any rubbish coming from the UK that doesn't conform to their standards.