vimothy
yurp
The way I see it, there's lots for investment. The rationale for this in general is sound (as hucks notes above), since, business sector saving is way up/investment is way down (see graph here page 4). The govt need lots of growth to make the ooh scary deficit look less scary. Otherwise, no reduction (tax revenue is still low, transfer payments are high). Will this actually happen? Don't know. I think the budget is okay (tho some odd stuff like capital gains) but I'm sceptical that private sector demand is going to reappear early enough to allow govt to hit its legal (!) obligation to reduce borrowing every year from 2011.
What's with the markets--I have two theories: one, they're not actually as stupid as Osborne, and they know what's going on; two, they don't believe this budget will actually get implemented.
What's with the markets--I have two theories: one, they're not actually as stupid as Osborne, and they know what's going on; two, they don't believe this budget will actually get implemented.