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This is not, in fact, true

If consumers spend less, as falling confidence suggests is likely, and businesses see a downturn in activity and, as a result, invest less, the unavoidable consequence is that the government will have to borrow more. This is what the sectoral balances suggest is inevitable, and they represent an unbreakable accounting identity that must always hold true, a fact seemingly unknown to almost any Chancellor in history.

For there is a fourth sector, the foreign.

Tsk.

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Deveril
Deveril
25 days ago

Or, yunno, the government could spend less.

Lol, I know.

Bongo
Bongo
25 days ago

If consumers spend more, and businesses see an upturn in activity and, as a result, invest more, the unavoidable consequence is that the government will have to borrow less
That’s how double entry economics works,is that right Spud. So cut taxes especially the bad ones.

Last edited 25 days ago by Bongo
Martin Near The M25
Martin Near The M25
25 days ago

That all sounds very old fashioned. What happened to quantum?

john77
john77
25 days ago

Today is Friday

Deveril
Deveril
25 days ago
Reply to  john77

That may or may not be correct.

(checks cat)

Michael van der Riet
Michael van der Riet
25 days ago

Well I dunno. My Samuelson is nearly seventy years old, and old-fashioned economics said that the less you spend, the more you saved?

Bloke in North Dorset
Bloke in North Dorset
25 days ago

That’s assuming you aren’t spending less because you’ve been taxed to the hilt.

john77
john77
25 days ago

Unlike Murphy I am not suffering from memory loss (is he young enough for his problem to be described as “early-onset-dementia”?). MacMillan was able to observe and in his later budgets to act upon the fact that increased business confidence and investment led to higher earnings by the workforce and (often but not invariably higher profits) yielding higher tax receipts enabling the Conservatives to make the poorest better-off (“richer” isn’t the best description).
Others among us will be able to cite other examples (I cite Mac because I read his explanation when I was a child and future Chancellors who followed the same policy failed to surprise me).

Michael van der Riet
Michael van der Riet
25 days ago

Spend less AND save less? I thought that “propensity” was a see-saw between the two?

Grikath
Grikath
25 days ago

Not when anything you do manage to save will run into umpteen% extra Tax when it surpasses the depressingly low Government Mandated treshold…

The Art of Taxation is to *eventually* Tax 100% of whatever you manage to accrue in a lifetime, including that which you managed to pass on.

Western Bloke
Western Bloke
25 days ago

Yup. Sales of Red Dead Redemption 2 are good and Dyson aren’t laying anyone off. Even if their new hand fan does look like a marital aid.

john77
john77
25 days ago

I cannot find the “Contact Timmy” link, and this seems the least bad thread on which to report the Grauniad’s celebrastion of “Inter-faith St George’s Day”.
St. George died for HIS faith, not anyone else’s. That is the definition of a martyr. So anyone with the IQ of a border collie would not promote an “Inter-faith St. George’s Day” unless thay had an ulterior motive.

Bloke in North Dorset
Bloke in North Dorset
25 days ago
Reply to  john77

So anyone with the IQ of a border collie ……

Maybe not this one:
https://x.com/yoda4ever/status/2047430322938331215?s=61&t=VX5cJ0-osgn_JSz7j-uowQ

Grikath
Grikath
25 days ago

The border collie is smart, actually… you can see it staying *just* out of easy pawstrike reach, even though the cat is Tracking… 😉

bloke in spain
bloke in spain
24 days ago

We took our border collie to a farm in France where they do sheep herding courses for dogs. He was a London dog & this was first time he’d even seen a sheep. 3 hours training & he was penning 10 sheep in under 5 minutes.
I suspect you could only do this in France. UK, the animal rights people’d be all over you like a bad smell. The farm specialises in raising rare breeds of sheep & this is what contributes to paying for it. Sheep aren’t bothered, they’re used to it. Seem to enjoy it as much as the dogs.

Bloke in North Dorset
Bloke in North Dorset
24 days ago
Reply to  bloke in spain

One of our go to places when we’re passing through Dordogne is a walnut farm just outside Souillac. They use a collie to round up their ducks in the evening and it has great fun as the ducks are worse than sheep for scattering.

Chris Miller
Chris Miller
23 days ago

There’s a guy who does performances at ‘county shows’ and similar, rounding up Indian running ducks with his collie.

Bloke in South Dorset
Bloke in South Dorset
23 days ago

Having suffered through a lot of ridiculous business conference ‘entertainments’, one of the few I actually enjoyed was being given a collie and a flock of those standing-up ducks to round up.

Pretty sure the dog knew what to do without my instructions, and the ducks probably did too, but fun to try.

philip
philip
25 days ago

O/T the Ukrainian rent boy arsenists trial starts at the Old Bailey on Monday.

To my intense disappointment I haven’t been called for jury service and haven’t managed to reserve a seat in the public gallery.

Does anyone know if the event is being live streamed. Channel 5, youtube?

I’m looking forward to reading Starmer’s victim statement. “They tried to set my back passage on fire, m’lud.”

Martin Near The M25
Martin Near The M25
25 days ago
Reply to  philip

I might put a fiver on them being unable to stand trial due a mysterious accident like cutting their own heads off while combing their hair.

Tractor Gent
Tractor Gent
25 days ago
Reply to  philip

Nothing like that in England & Wales. Occasionally we get to see the judges’ stern words to convicted felons.

There have been programmes that include extracts from Scottish trials but even then I don’t think they are shown live.

Mike Finn
Mike Finn
23 days ago

The suggestion here is that if businesses don’t invest, government must step in. Who actually thinks government actually does a good job of investing as opposed to pissing up the wall or pocketing? So, probably not a great alternative. And “accounting identity” is a red flag… anyone who believes accounting in any way mirrors reality is one proverbial short of a picnic.

john77
john77
23 days ago
Reply to  Mike Finn

Have you never been to a fairground with a “distorting mirror” stall?

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