IMF suggesting cutting spending too fast is not good.
We have a long way to go to truly understand the inter-relationship between income, spend, tax, public expenditure, private expenditure, exports, imports. In a world where the lines between public and private spend are very blurred and how one feeds off the other.
If an organisation exists which draws in income of say 50% of the country's GDP and pays out 50% of the country's GDP, if such an organisation reduced expenditure, it would have a massive negative impact on the country.
The fundamental nature and purpose of money, work and being paid for what you earn has eroded over the decades until it all imploded in 2008. And such nature is linked to human nature. So long as we believe in a system whereby people earn, deserve, and are worth being paid millions for certain type of work, eg being a footballer in the Premier League or chief executive of a bank, but not others eg being a nurse or chief executive of a small NHS trust, for ostensibly work utilising one's talents, the problem will not go away.
http://www.dailymail.co.uk/news/article-2216537/Cuts-best-way-tackle-debt-says-IMF-chief.html
No comments:
Post a Comment