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Wednesday, 9 September 2015

Wednesday, September 09, 2015 Posted by Hari No comments Labels: , , , , ,
Posted by Hari on Wednesday, September 09, 2015 with No comments | Labels: , , , , ,

KJ get's there in the end, with help from Fee and Chris...

SOURCE TELEGRAPH: Five good things about Corbyn (even if you're not a Labour supporter)
Did you ever wonder why the banks and the City (who caused the great recession) were also the largest beneficiaries of re-inflating the economy with quantitative easing? And did you not perhaps feel a little aggrieved that, once they’d got what they wanted, they carried on as if nothing had happened, displayed no gratitude whatsoever and changed their ways not a bit? Anyway, history has shown that there is alternative in the form of a massive public works programme. You know, like the New Deal. A response to an economic calamity that benefits everyone, not just the people who caused it. Imagine if, instead of a few new towers in the City we had new jobs, new ports, new roads and new railways. Imagine, if instead of austerity, we had government spending. You wouldn’t even need to print money to do it. Rather, governments could borrow it - and at the lowest rates for decades. The Economist recently described the failure of governments to borrow to build as a “missed opportunity”, while Standard & Poor’s reckons that, for every 1% of GDP spent on infrastructure the UK’s economy would grow by 2.5 per cent.

SOURCE STANDARD & POOR'S: Global Infrastructure Investment: Timing Is Everything (And Now Is The Time)
Standard & Poor’s sees clear economic benefits to G20 countries’ increased public spending on infrastructure–with the so-called “multiplier effect” of an increase in spending of 1% of real GDP running as high as 2.5 in a three-year period. The multiplier effect is generally greater in developing economies than for more developed countries; for example, China, India, and Brazil would all enjoy a boost to GDP of at least double the increase in investment. For Europe, it’s clear that a concerted effort across the region would have a greater effect than country-specific increases in spending. For developed nations, the increase would boost employment substantially–adding more than 700,000 jobs in the U.S. and about a million in the EU. In addition to the short-term boost to jobs and aggregate demand, infrastructure investment often yields long-term benefits by enhancing efficiency.


OUR RELATED STORIES:

Labour Leadership: What shall it profit the Labour party if it shall gain the whole world and lose its own soul?

Since 1979, Labour or Tory, inequality rose whilst economic performance remained the same

Corporate scroungers: How about forcing employers to publish how much welfare top-ups their low paid staff depend on

UK wage inequality is the highest in the EU. Our gender pay gap is the second highest. So, it’s about employee negotiating power, not value-add

Graphs at a glance: Budget 2014 document shows we’re growing through borrowing. Again. That's why Britain needs a pay rise

Britain is already a low-pay economy with falling average wages

Who needs fat cat pay? The Germans don't. See the comparison with the UK

Workers driven from full to part time work is the only reason employment is holding up

The incomes of the bottom 90% have hardly risen in 20 years, whilst the top 1%’s has doubled

MPs are paid more than 95% of Britons, and that doesn't even include their expenses


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