Quote:
Originally Posted by TarJak
The problem is that by the time you have gotten to 3rd stage economy based largely on services rather that production, you have priced yourself out of the primary and secondary markets.
The only way you can compete then is to drop your salary which no-one wants to do because of the hit on standard of living.
I don't know the answers but going back stages is not as easy as you might think unless people are prepared to forego their previous lifestyles. This only happens when the economic downturns bite hard enough on enough people to force large sections of the economy to shift direction.
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Hmmm, good point, however it's coming up to a crunch time where people might not have much of a choice. Of course, the reductions will hit the poorest hardest and it'll be Greece in the UK. There is no real answer that will fix the problems we face without significant pain for most of the country. On one hand, raising the pension age is an inevitability, as our local MP put it last night in the commons the average life expectancy in the UK is rising at a critical rate, an unsustainable one even. However you cannot target pensions and public sector workers alone, you have to make the cuts across the board and treat everyone equally, you have to tax the richest as well as the poorest. I don't know if that is what they are doing, but there is a widespread belief that they are not, that they are hitting the poorest and the disadvantaged first, then hitting public sector workers, whilst leaving the bankers and rich people well alone, I don't know if this is true or whether it is a myth brought about by popular perception of the Conservative party however it doesn't have to be true for it to rile the people up. I have a feeling we are in for another 'Winter of Discontent', quite possibly two or three of them to be honest.