Comments on: Sunday Telegraph article http://johnredwoodsdiary.com/2009/01/12/sunday-telegraph-article/ Incisive and topical campaigns and commentary on today's issues and tomorrow's problems Thu, 09 Feb 2012 11:18:17 +0000 hourly 1 By: Hugh Watkins http://johnredwoodsdiary.com/2009/01/12/sunday-telegraph-article/#comment-9809 Hugh Watkins Thu, 15 Jan 2009 11:06:32 +0000 http://www.johnredwoodsdiary.com/?p=2592#comment-9809 Some very good points raised here. Possibly reducing NI rates for employee and employer would both put more money in people's pockets and reduce (at the margin) the coming wave of layoffs. Some very good points raised here. Possibly reducing NI rates for employee and employer would both put more money in people’s pockets and reduce (at the margin) the coming wave of layoffs.

]]> By: Frugal Dougal http://johnredwoodsdiary.com/2009/01/12/sunday-telegraph-article/#comment-9808 Frugal Dougal Mon, 12 Jan 2009 21:28:52 +0000 http://www.johnredwoodsdiary.com/?p=2592#comment-9808 Hear hear. I don't know what's changed since James Callaghan said this to the Labour Party Conference in September 1976: "We used to think that you could spend your way out of a recession and increase employment by cutting taxes and boosting government spending. I tell you in all candour that that option no longer exists, and in so far as it ever did exist, it only worked on each occasion since the war by injecting a bigger dose of inflation into the economy, followed by a higher level of unemployment as the next step." Perhaps, for Gordon Brown, not listening to the Tories is understandable. But not listening to a Labour Prime Minister who was at that time going through the humiliating process of applying to the IMF for assistance is bizarre, stupid and unforgiveable. Hear hear. I don’t know what’s changed since James Callaghan said this to the Labour Party Conference in September 1976:

“We used to think that you could spend your way out of a recession and increase employment by cutting taxes and boosting government spending. I tell you in all candour that that option no longer exists, and in so far as it ever did exist, it only worked on each occasion since the war by injecting a bigger dose of inflation into the economy, followed by a higher level of unemployment as the next step.”

Perhaps, for Gordon Brown, not listening to the Tories is understandable. But not listening to a Labour Prime Minister who was at that time going through the humiliating process of applying to the IMF for assistance is bizarre, stupid and unforgiveable.

]]> By: Roy W http://johnredwoodsdiary.com/2009/01/12/sunday-telegraph-article/#comment-9807 Roy W Mon, 12 Jan 2009 20:47:36 +0000 http://www.johnredwoodsdiary.com/?p=2592#comment-9807 Re VAT change (Dr Dan H.) "Missing something here?" - Yes, it's employment creation! - Think of all those extra people needed to change all those price tickets and price lists now - and back again later! - and civil servants to snoop on them to make sure they do! Instant job preservation / creation - brilliant! But excuse me - who pays for all this? Why, we do, of course. Another act from conjurer Brown. Re VAT change (Dr Dan H.)

“Missing something here?” – Yes, it’s employment creation! – Think of all those extra people needed to change all those price tickets and price lists now – and back again later! – and civil servants to snoop on them to make sure they do! Instant job preservation / creation – brilliant!

But excuse me – who pays for all this? Why, we do, of course. Another act from conjurer Brown.

]]> By: rugfish http://johnredwoodsdiary.com/2009/01/12/sunday-telegraph-article/#comment-9806 rugfish Mon, 12 Jan 2009 19:55:16 +0000 http://www.johnredwoodsdiary.com/?p=2592#comment-9806 Very sensible Mr Redwood. My only reservation is the gifting away of preference shares to foreign investors which hold a return of 12% along with the the potential of giving them the Sword of Damocles over our banking industry and thus our entire economy, although to be fair, if things worsen which we all must fear they will, then this will likely be the case because there will likely be no other avenue out of the recession/depression/slump/crisis. Fingers crossed that Brown "Does Something" rather than the Wrong Thing then and listens to what you say. Very sensible Mr Redwood. My only reservation is the gifting away of preference shares to foreign investors which hold a return of 12% along with the the potential of giving them the Sword of Damocles over our banking industry and thus our entire economy, although to be fair, if things worsen which we all must fear they will, then this will likely be the case because there will likely be no other avenue out of the recession/depression/slump/crisis.

Fingers crossed that Brown “Does Something” rather than the Wrong Thing then and listens to what you say.

]]> By: Dr Dan H. http://johnredwoodsdiary.com/2009/01/12/sunday-telegraph-article/#comment-9805 Dr Dan H. Mon, 12 Jan 2009 11:46:58 +0000 http://www.johnredwoodsdiary.com/?p=2592#comment-9805 What I cannot understand about this Government's strategy is why they even considered the VAT reduction. This reduction put a lot of people to a great deal of trouble, and hardly affected what the common man has to spend at all, and must in addition have put the Government to a great deal of trouble as well. A much easier way to boost personal spending power would be to increase the basic tax-free allowance somewhat, thus putting more money proportionately into the pockets of the poorest of society; i.e. they could bribe the poor working class very effectively indeed using this measure, whilst still being able to fleece the rich quite effectively. For a party which purports to represent the poor working class, an increase in the tax-free allowance would therefore have made a very great deal of sense. Abolishing tax credits and increasing the aforementioned tax-free allowance in proportion would have been another masterstroke, since it would have reduced the Government's costs and fed the poorest in society another boost to their income. And yet, they chose the one tax adjustment which would cause them the most hassle to administer and which would do their electoral prospects the least good. Are they really this stupid or am I missing something here? What I cannot understand about this Government’s strategy is why they even considered the VAT reduction. This reduction put a lot of people to a great deal of trouble, and hardly affected what the common man has to spend at all, and must in addition have put the Government to a great deal of trouble as well.

A much easier way to boost personal spending power would be to increase the basic tax-free allowance somewhat, thus putting more money proportionately into the pockets of the poorest of society; i.e. they could bribe the poor working class very effectively indeed using this measure, whilst still being able to fleece the rich quite effectively.

For a party which purports to represent the poor working class, an increase in the tax-free allowance would therefore have made a very great deal of sense. Abolishing tax credits and increasing the aforementioned tax-free allowance in proportion would have been another masterstroke, since it would have reduced the Government’s costs and fed the poorest in society another boost to their income.

And yet, they chose the one tax adjustment which would cause them the most hassle to administer and which would do their electoral prospects the least good.

Are they really this stupid or am I missing something here?

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