The motor for economic growth is the spending power of the lower and middle income groups. 20% of the pensioners money flows back into the government coffer with VAT.
Those selling must pay taxes, also the manufacturer and farmers that make the products. Selling, buying creates demand that in turn creates jobs. The UK used quantitative easing, (printing money-leaving the incurred debt to be paid for by later generations) to increase the availability of cash . Manufacturing is not the economic motor of the UK, the banks that have moved on from lending to businesses now make their money from speculation in 'money products' leaving manufactures without loans and cash strapped like never before. Without is social safety network and pensions the UK would see consumer power decimated, its the poor that actually keep the UK ponzi scheme afloat. The new Greek government has pledged to repay in full obligations to the International Monetary Fund and the European Central Bank. Finance Minister Yanis Varoufakis outlined plans to swap some debt into new securities and link repayment with economic growth. Until now Greece has been paying its debts with a credit card making the debt larger and unsustainable. The Greeks must return to growth, for the first time since the 2e world war it has a government that could deliver....As the EU's favourite soap - Greekenders - was entering its fifth season, we wondered if the writers had run out of ideas. Of course, we still had all our favourite characters - tough, tight-fisted housewife Mrs Merkel, miserable old sod Mr Schäuble, suntanned (crocodile-skinned?) fashionista Ms Lagarde and stylish, suave Italian lothario Mario Draghi. But with the endless austerity and falling viewing figures, we wondered whether Greekenders was on the way out as Europe's favourite evening entertainment, whether we were heading for what we in the TV business call a "Grexit". Thankfully the Greekenders writers have responded to public concern about a boring plot with the introduction of two exciting new characters. There's the flamboyant young second-hand car dealer Alexis Tsipras with his flashing smile, filmstar looks and smooth sales patter. And there's the new accountant - Yanis Varoufakis. But the new Greekenders accountant is not some boring, besuited nobody. He's a young, shaven-headed, motorbike-riding smoothie with a Mediterranean charm and a way with the numbers that might even put a bit of fire into the cold, stone-like hearts of grim misery-guts Merkel and crocodile-skinned Ms Lagarde.
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