Conservative-DUP Deal - £1bn the price for strong and stable government?

Ruperts slippers

They want power so they create the money, Public services would like a pay rise, er, no sorry, no money.. Considering the concept of money has changed over the yrs the attitude is appalling, this combined with the management of the countries housing needs. They can find and create value for themselves yet not for members of the general public.

Ruperts slippers

In addition, this magic money tree people keep using as an playground insult is rather embarrassing, considering money is a representation of the quantitative and qualitative actions of the market place and ultimately a social mechanism for life itself..
Were not exchanging rocks for a fish anymore, its not 1920, we're not tied to Bretton Woods gold standard, money has no limits. It's the people that control money, that bring the least to the table, money can be used for constructive reasons or destruction. At the moment what is happening, especially in the UK, is unethical and immoral, money is the product of the collective actions of civilisation, which is meant to develop the interests of all human-kind not just a few..
****s, this Cons government is getting on my wick, the conservation of old fashioned values, traditions and institutions, this government is doing a bloody good job of destroying the cohesive qualities of history all on it's own.

Bit of a rant, but really angry with the buck passing, waffling and flagrant disregard for the constituents and democratic process, so desperate for power.

Pacifico

I suggest you ask the people of Zimbabwe that..

Time and again it has been proven that magic money trees dont exist, and time and again you keep getting populist politicians coming along promising spending for everyone without having to pay for it - or like in Corbyns case, promising that someone else will pay for it.

Ruperts slippers

Why are you comparing a poorly governed, poorly structured, poorly resourced, unproductive country like Zimbabwe with the UK or any other leading western economy..
Early on in Economic study, the course work involves looking at the History of Money, conceptually money has changed and continues to evolve.
What adds more value, and for whom, a deal with the DUP to retain power or let's say for instance a 10% pay rise for PS workers, it's hardly going to crash the economy, they might just be more productive. Just a thought.

Goooner

Wouldn't everyone else start asking for a 10% as well? Wouldn't goods and services rise in price too if there's more money around?

Pacifico

Who knows what the DUP are going to spend that money on - it might be a 10% raise for PS workers.

You seem to have the mistaken idea that the money is going to the DUP

Ruperts slippers

I'm just using the DUP as a representative figure of speech, nobody really knows where the money has come from or is going to..

Jezza99

A 10% rise for PS workers would cost £20 Billion. Hardly small change, you could build a lot of hospitals and schools for that. Then you would have the knock on effect of the RMT, Aslef etc demanding an equal rise of 10%, and then we would back to the inflationary madness of the 70's. Which would quickly wipe out that 10% pay rise. And cause yet more strikes for yet more pay. Back to the madness of the 70's.

As for there being a "limitless" amount of money available that just needs to be printed, I am frankly surprised that anyone could actually believe this to be true; if it was, surely everyone would be doing it?

The reason they aren't is because it isn't true. While there is no longer an asset link such as the Gold Standard, the store of value is now limited and governed by confidence. So for instance, the day before that idiot Peston went on TV to announce that Northern Rock was looking a bit shaky, no one was worried about the value of their money held with NR. The day after,they were queuing up to withdraw all their money. Was there any change in the actual amount of money they held in NR overnight? No. The only thing that had changed was their confidence that NR would pay them back whenever required.

Goooner

Isn't that exactly what they were doing in Germany in the 20s? Leading to hyperinflation.

Ruperts slippers

My example was given on the basis of Ceteris Paribus, any rises in pay would obviously have to be evaluated, the decision to cap public sector pay was always a political decision. Direct controls applied by the government have lead to wages falling in real terms, consequently negative externalities have followed such as low staff morale, recruitment, staff retention. Furthermore, this is now a major cause for public concern, policy-makers need to be aware of the effects of their decisions on the quality of service, along with the growing public dissatisfaction concerning this issue of 'We have no money', when what it actually means is 'We have no money for you'

And why do posters keep comparing 1920, 1970's with now.. Rhetorical....