Govt talking down the economy

[Howitzer]

I am sick and tired of the Govt talking down the economy. We continually hear senior ministers moaning about the academic and armchair economists "talking us into a recession" but they seem to be doing a good enough job of it themselves.

I see the news today is that income tax is to increase by 1% and child benefit is to be reduced by 10%.

What news? There's no budget for 2 months.

For the last 3 months we've had ministers unable to make decisions themselves leaking details of proposed cuts into the press - "flying kites", "softening up the voters" - simply because they're afraid to make a decision.

Now we're going to have another 2 months of it.

This is what is affecting consumer confidence at the moment. We know where we are in relation to unemployment, interest rates, house prices. It's the Govt ministers themselves, and their inability to just make a hard decision without flustering over the political consequences in the local constituency, which is really grinding my gears.

 

[shnaek]

I am sick and tired of the Govt talking down the economy.

The government talking down the economy? I don't know why they don't commit suicide...

 

[Purple]

This is what is affecting consumer confidence at the moment. We know where we are in relation to unemployment, interest rates, house prices. It's the Govt ministers themselves, and their inability to just make a hard decision without flustering over the political consequences in the local constituency, which is really grinding my gears.

That's a direct result of our stupid electoral system, which has been discussed here a number of times.

 

[Chris]

This is what is often referred to as "regime uncertainty" in the world of investment and economics, where there is too much risk of adverse gerventment actions.
As for talking the economy down, I do not believe that an economy can be talked up or down. If all we needed was talk then our politicians should be able to create a magnificent, everlasting boom. While reducing uncertainty around taxation would help, I do not believe that politicians are capable of doing this unless they stop talking and stop interfering in markets.

 

[cork]

Too much air ime is given to academic economists.

Too much time is given to business writers trying to flog their books for Christmas.

Too much time is given to the opposition - not coming up with solutions.

We need solutions. Not kite flying but real proposals.