Will the government cutting VAT help shops?

No...course it fucking won't.

Why do companies not get that people buy things using the wages they give out?

Employ more people and raise wages and you'll get people spending more you utter prats.

How do you employ more people and raise wages if you don't have the capital?

They do....they have hissy fits when their profits drop, they just expect them to go up every year.
Whats more the first thing they always cut are the employees at the bottom which rarely helps.

If they had guts they'd try employing more people and try to be more competative.

This isn't question time.

How do you expect a company to be competative when they are not making as much money, filthy commy.

By taking some risks.

People can't buy stuff if they're unemployed or underpaid.

Actually, as incomes rise, a person's marginal propensity to consume decreases and their marginal propensity to save rises. i.e. more money = less spending + more saving.

Hiring extra people when you don't have to makes a company more inefficient and thus less competitive.

I'm not saying hireing too many people...but britian seems to have this skeleton staff policy system where the hire THE lowest amount of people you can (and sometimes even less than that).

Hire what you ACTUALLY need, plus maybe one or two extra people to cover illness or busy periods.

A debate in a forum that has around 10 active users, of which I reckon 2 are actually interested in the subject.

Sorry Rory, why don't you piss off and spend a few hours talking to your reflection about what hair products it uses.

1. Britian doesn't have a skeleton staff policy, they only hire the number of staff they actually need, this is because:
a) They wont be efficient otherwise
b) They need to cut costs to compete in a global/e-business market
2. Of course a VAT cut will help shops, if they pass the tax cut onto consumers through a reduction in price, then its going to attract more customers, customers they may not have had if the price was higher.
3. How is hiring more workers going to make them more competitive?
4. Taking risks is what got the economy fucked up in the first place

When you can't get the credit you want and you need to be careful with the money you do have, the last thing you want to do is employ more people.

we should all ask satan to help us out . . oh wait we did

tiredhippo wrote:

No...course it fucking won't.

Why do companies not get that people buy things using the wages they give out?

Employ more people and raise wages and you'll get people spending more you utter prats.

Hippo demonstrates a complete lack of understanding of economics.

Blackbat shows an over abundance of predictability.

Aww, Hippo resorts to cliches cause he knows he's talking out his backside again.

Is putting "awwww" at the start of all your posts like some sort of virtual penis extention for you?

Yes. Exactly that, Hipster.

Do you feel insecure then?

Virtually insecure.

You know, I'm almost surprised Hippo hasn't decided that they should just print more money in order to sort it out. Would probably fit the rest of his retarded thinking on the matter....

He's probably printing some right now.

if you ask me, printing money would not lead to hyperinflation.

or indeed jail for counterfeiting.

I am confident of Gordon Brown's ability as an economist, just not a leader.

ginwai wrote:

or indeed jail for counterfeiting.

It would if you used the Inkjet that Hippo's got.