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Published on October 17th, 2011 | by Tim Sykes
Image ©   [caption id="" align="alignleft" width="186" caption="At least the Economy isnt like Greece says Complaicent Osborne"][/caption] Almost three years on from the banking crisis that nearly saw the Bankruptcy of so many british banks, the UK economy remains in almost as bad a situation as it was then. With stagnant growth since then and the economic circumstances looking more and more likely to get worse again, the UK looks set for another recession. Something the government can little afford to have with mounting unemployment particularly in the youth and women. The increase in VAT to 20% which happend last year also has meant people have less money in their pockets and with the continual rise in the cost of living for essentials like bread and paying for gas and electricity, the future of the British economy is looking gloomy. The reaction to this set of negative economic circumstances is for the Chancellor of the Exchequer to insist that his plan of cutting money from services such as the Police and Education will help the economy restore itself to prosperity. What the Chancellor  refuses to see however is that the economy will continue to get worse because families and people with lower incomes will have less money to spend and therefore less money to put back into the economy. The current tactic of the government is to cut and when the economy looks like its going to fail, print more money to try and ease the system. However this time, the plan that they have been using since the formation of the coalition government back in may looks destined to fail and then the government will be in serious trouble. The rise in inflation that occurs when the printing of money or quantative easing happends will make things again more expensive and will worsen the situation still further. The only alternative now is a Plan B andsooner rather than later .

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Why now is the time for a plan B for the British Economy?

 

At least the Economy isnt like Greece says Complaicent Osborne

Almost three years on from the banking crisis that nearly saw the Bankruptcy of so many british banks, the UK economy remains in almost as bad a situation as it was then. With stagnant growth since then and the economic circumstances looking more and more likely to get worse again, the UK looks set for another recession. Something the government can little afford to have with mounting unemployment particularly in the youth and women. The increase in VAT to 20% which happend last year also has meant people have less money in their pockets and with the continual rise in the cost of living for essentials like bread and paying for gas and electricity, the future of the British economy is looking gloomy.

The reaction to this set of negative economic circumstances is for the Chancellor of the Exchequer to insist that his plan of cutting money from services such as the Police and Education will help the economy restore itself to prosperity. What the Chancellor  refuses to see however is that the economy will continue to get worse because families and people with lower incomes will have less money to spend and therefore less money to put back into the economy. The current tactic of the government is to cut and when the economy looks like its going to fail, print more money to try and ease the system.

However this time, the plan that they have been using since the formation of the coalition government back in may looks destined to fail and then the government will be in serious trouble. The rise in inflation that occurs when the printing of money or quantative easing happends will make things again more expensive and will worsen the situation still further. The only alternative now is a Plan B andsooner rather than later .

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