Britain Has Binged On Debt
In the past few years, Britains economy has become bloated as consumers have been bingeing on debt and failing to work off the excess, Reform has claimed.
The independant think tank reports that Britains trade deficit is continuing to burgeon, while public spending programmes are based on out-of-date and over-optimistic forecasts for gross domestic product (GDP) growth. The tendency to rely on cheap credit cards and cheap loans to support spending habits has produced an economy that is unfit and working inefficiently. The group also pointed out that it is not just consumer borrowing that has caused the countrys coffers to become corpulent with debt, as the public structural budget deficit has become the fourth highest of all countries in the Organisation for Economic Cooperation and Development.
It's also been warned that over the coming years, around 4000 will have to be paid by the average taxpaying family, in an attempt to rebalance the national debt, that's equivalent to 100 billion pounds in tax contributions each year.
Reform warned, cutting public expenditure on vital long-term development programmes is equally ill-advised, as it claimed that as recent history has shown, cuts in spending will inevitably lead to increased investment a few years down the line. Ahead of the pre-Budget report, which will be announced by Alistair Darling on Monday 24th November, So too, it warned that simply injecting more public money into the banking industry will have little lasting effect on the state of the countrys economy.
Rather, the group insisted that there is only one course of action that will relieve the strain of the national debt: "In order to move beyond the obese economy, Britain has to consume less and work more. Households need a sense of direction towards a higher saving, lower tax economy. The short-term objective is the same as the long-term path to economic growth - to increase productivity. This should be the theme of the Pre-Budget Report and of Budget 2009."
In addition, the group called on the chancellor to focus the following key objectives: personal productivity, private sector productivity and public sector reform.
Finally noted by the group is that, as people are vital to the economic recovery there must be support from the government; to help them stop relying on loans and credit cards for example, but have them start spending their own money.
For those who have seen their finances blown out to sea in the recent economic storm, taking out a debt consolidation loan may prove an effective way to get back on a firm footing monetarily. Meanwhile, the number of people who are in need of a debt consolidation loan may grow in the coming months as the independent financial advice site the Motley Fool warned that millions of Britons are unprepared for a recession.
The independant think tank reports that Britains trade deficit is continuing to burgeon, while public spending programmes are based on out-of-date and over-optimistic forecasts for gross domestic product (GDP) growth. The tendency to rely on cheap credit cards and cheap loans to support spending habits has produced an economy that is unfit and working inefficiently. The group also pointed out that it is not just consumer borrowing that has caused the countrys coffers to become corpulent with debt, as the public structural budget deficit has become the fourth highest of all countries in the Organisation for Economic Cooperation and Development.
It's also been warned that over the coming years, around 4000 will have to be paid by the average taxpaying family, in an attempt to rebalance the national debt, that's equivalent to 100 billion pounds in tax contributions each year.
Reform warned, cutting public expenditure on vital long-term development programmes is equally ill-advised, as it claimed that as recent history has shown, cuts in spending will inevitably lead to increased investment a few years down the line. Ahead of the pre-Budget report, which will be announced by Alistair Darling on Monday 24th November, So too, it warned that simply injecting more public money into the banking industry will have little lasting effect on the state of the countrys economy.
Rather, the group insisted that there is only one course of action that will relieve the strain of the national debt: "In order to move beyond the obese economy, Britain has to consume less and work more. Households need a sense of direction towards a higher saving, lower tax economy. The short-term objective is the same as the long-term path to economic growth - to increase productivity. This should be the theme of the Pre-Budget Report and of Budget 2009."
In addition, the group called on the chancellor to focus the following key objectives: personal productivity, private sector productivity and public sector reform.
Finally noted by the group is that, as people are vital to the economic recovery there must be support from the government; to help them stop relying on loans and credit cards for example, but have them start spending their own money.
For those who have seen their finances blown out to sea in the recent economic storm, taking out a debt consolidation loan may prove an effective way to get back on a firm footing monetarily. Meanwhile, the number of people who are in need of a debt consolidation loan may grow in the coming months as the independent financial advice site the Motley Fool warned that millions of Britons are unprepared for a recession.
About the Author:
Abbi Rouse writes for All About Loans where visitors can apply online for UK personal loans. We also specialise in poor credit loans, and loans for debt consolidation.
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