A desperate situation (the economy)

Why can't the bank of England just print more money and give everyone a nice Christmas bonus?

Nationalise a supermarket and give everyone free shopping for a bit?

Honestly? No idea. It's bleak.

? And that's him told harrrrrrumph!

I think I'd save money by removing every second line of line managers from all civil service positions. I'm convinced that either no one would notice or that things might happen quicker if there wasn't a manager to sit on it.

Make alchohol free. It won't help the economy but we'll all be too trollied to care.

good thinking ??

A small rise in income tax. I wouldn't be popular but I'm used to that ?

Waaaaahhhhhhh! at your tag! I think I would be great ?

...and chocolate and nice food. That would help.

And shoes, and make-up and pretty dresses.................

Can I be honest? I don't know how or what could be done to improve things and that scares me. I'm sure there are plenty of hings that could help but I can't think of any.

I don't think anything will help except the passage of time, although whichever idea is being tried immediately before things start to recover will get the credit.

What a boring answer ?

?yes, shoes would help. They always help!

? Not the right crowd today NickJ.

I haven't a clue. I'm still not 100% sure how all this has happened. All I know is that I'm doing my very best to cut back on spending and sort out my debts so I must be scared.

Seriously though - why can't the bank just make more money to help out countries that are in debt?

You can tell I know NOTHING about finance or banking. Even though my Father & Brother are both in the finance business ?

<whispers> does anyone think some of these replies were the sort Nick was after? ?

Christ, i should have known better ?

?

Have a look at the economic history of Germany in 1922-24 or Zimbabwe over the last few years for an all too graphic answer!

In a nutshell, if you print more banknotes (which aren't actual money, merely representations of wealth), their value falls (because there's fewer resources to back them), and if things spiral out of control you get hyperinflation.

Exactly. Money is made every year - so why not just make more? Who decides how many new notes should be made? Or how many new pennies should be put out in circulation?!

? The thing is Nick, (and I don't think I'm alone here) I live in a bubble, and in my little bubble, nothing can/will affect me. I ignore politics (and know nothing about it - seriously) don't watch the news, and have the wool firmly tugged over my eyes -and ears for that matter. H knows a lot about what is going on and being self employed is always fretting about work and paying bills etc. While he fretts I usually switch off and watch eastenders or something. ?

I am being very careful with money at the moment, TBH if we hadn't paid the balance for mexico we wouldn't go. But apart from that I am 'bubble girl'. (h's words, not mine ?)

See Mr Jk s eloquent response. it isnt feasable to just "print more money", that would lead to bigger problems than we have currently.

all those years where Brown said "we re being prudent" - oh yes, spending every penny on sodding public services and borrowing more for the same. so so prudent.

Is my tax idea a really bad one?

i dont think anyone can really afford not to have an interst in politics, certainly at the moment. and believe me, you will feel it if and when your H loses work because of the current situation. If you were aware of each partys policies, you could then make an informed decision as to who to vote for. sorry if that sounds a bit snotty, it isnt meant to, but your policitical interst may well increase if your livelihood is under threat.

yes - people have less money now anyway, taking more from them will make matters worse, starting with the retailers. come christmas and the new year, theres going to be carnage on the high street, and then they ll be another huge media storm. well, until the US inauguration anyway.

So, why can't rich people pay more tax etc, i'm sure Posh could do without a few £600 pair of shoes if it helps us lot out? and maybe the footballers etc could not get paid as much?

Told you I live in a bubble.

In economic terms, yes - because it discourages people from spending, and that's one of the problems facing the economy right now. Which is why we've just had this humungous interest rate cut, to encourage people to start sloshing more money around.

A tax cut actually makes more sense at this particular moment in time, which is why Gordon Brown seems to be publicly considering it.

Ah, I see, thanks. If unemployment is on the up though, presumably more people will be claiming benefits so who is going to pay for that if the treasury has no money?

Yes. (well, imo, fwiw ?).

1. stop spending what you don't have (aimed at Gordon and Joe public).

2. Put the state on a crash diet- it needs to slim down dramatically and become more efficient.

3. Get banks lending again- not at crazy LTV like before, but at a sensible, proportionate rate. (government should use their golden shares in HBos, northern crock, B&B and RBS to force this)

That's a start anyway. I would also:

4. cut tax. More money in the pockets of the average person will provide a feelgood factor (well, in some cases, it might help some poor soulds keep the shirts on their backs) and will stimulate spending in the wider economy.

Cameron is an economic illiterate, which is a bit of a problem for the conservatives.

I don't think the 'rich' should pay more tax.

I think footballers and pop stars should though. I mean, does Elton reeeeealy need £300 mill in the bank??

(this is tongue in cheek before I get flamed)

Like you ATG, I live in a bubble. OMG am I a bimbo ?

I know I need to pay more interest, especially now. And I am trying and being on here helps as things seem to be talked about in more simpler terms that all the rubbish on the news/papers. It doesn't sound snotty at all - i know your right!

They tried that in the 1970s, with the net result that a significant number of financially savvy people siphoned all their cash into offshore accounts, and exploited every loophole going. And it's even less likely to work in a far more globalised economy.

As for footballers' wages, this is one of the best examples of a purely free market in action - the likes of Wayne Rooney get colossal sums because he's massively in demand, as his involvement is perceived to increase the value of his club by an equivalent amount. If this was no longer the case (and most professional footballers have a pretty short shelf life), his wages would start to fall - which is why brighter footballers (or those with clued-up IFAs) branch out into other businesses.

How about the stamp duty holiday that's been talked about in the press? Would that help? I think if the housing market picked up, then people would feel better.

The real problem, though, is the unwillingness of banks to lend to each other isn't it? And their lack of cash means lack of mortgages. Why not have the bank of england offer low-interest mortgages to 1st time buyers?