Yes, they’re not all the same, but they could be a lot more different
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This was because banks like Morgan Stanley had fixed the numbers from memory to show they had a vibrant economy to meet EU economy standards for membership…they didn’t and that is what basically collapsed their economy and cost other EU nations (mainly Germany and Britain)…
And it wasn’t just Greece that Morgan Stanley apparently failed in how nations joined the EU.
That sounds like fraud to me. Was that actually the case?
I’ll need to look it up.
Apologies it was Goldman Sachs
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As said above, the leading EU nations understood this at the time (and Greece publicly admitted as such by around 2004), so it isn’t really what caused the collapse, nor UK/ German choice of rescue package.
There were certainly decisions made by the Greek government following entry which had a greater impact - borrowing for the 9 billion euros it spent on the 2004 Olympics for example.
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For something more reputable/reliable than Quora:
https://www.reuters.com/article/goldman-sachs-greece-derivatives-idUSLDE61L1KH20100222/
The key contention being not that fraud was committed, but Goldman Sachs among others sold Greece derivatives to enable them to reduce the nominal level of debt.
The specific instruments at contention in the article are currency swaps, which helped Greece to mitigate rises in foreign-denominated debt.
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Farm inheritance is a contentious subject, and VAT on public school fees is a drop in the ocean.
Highest rate of income tax could have been looked at and tapered upwards.
To my knowledge, the highest rate is 45% (47% in Scotland) on earnings above £150k.
Another rate (or 2) could have been added on say earnings above £250 you pay 50% and earnings above £350k 55%.
But what do I know compared to the chancelor with so many years under her belt as an experienced economist?
For what it’s worth by the way, if anyone criticises the bailouts on the grounds that it imposed punitive conditions on Greece, it should also be pointed out that the exact same economic principle for the conditions are those that austerity is based on, and also one of the fiscal rules Reeves tweaked in the recent budget.
What do you think of a wealth tax?
Yes, but Labour had ruled out raising income tax as part of the manifesto.
It also makes sense for the government to broaden the range of taxes it uses to raise revenue, or close loopholes.
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I’m assuming that she has consulted with the many economists that are employed by the government. The criticism that I have heard of the current government is that they are being led too closely by the treasury and lack political street-smarts.
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I remember they announced the setting up of an economic advisory council up announced led by John van Reenan and which featured economists from other organisations too (including one who used to be a violinist with Clean Bandit!).
There may also be other external economists featured on the mission boards they have set up.
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Definitely this.
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Fair comment.
We wouldn’t want them going back on previous promises would we?
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Rightly so.
Income tax - the tax you pay on wages you receive from your main job - should be as low as possible. Conversely, taxes levied on unearned income should be far higher than is currently the case.
It’s not only perverse but morally bankrupt that capital gains tax is lower than income tax.
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Yeah, very much so. The Greeks lied, the rest of the EU knew the Greeks lied, but preferred that at the time to the alternative. Where there was some anger (including at the EC) was that after entering the Eurozone with weak credentials, there was an unstated expectation that Greece was late/slow but would make up the numbers, while what happened in Greece was more like after university exams are done…
Fundamentally, the accession to the Eurozone significantly overstated Greek wealth/prosperity/productivity, and that in turn allowed an unsustainable level of debt to develop. The fundamental reason for austerity was that that overstatement had to be corrected downward. The markets were not willing to carry it if the EU wasn’t.
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I think that removes more agency that it should from Greece, but yes, that Goldman derivatives deal did help move the numbers. Sort of a little sneak preview of the US real estate fiasco.
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Fucking hell!!!
The farm owned by Jeremy ‘MAN OF THE PEOPLE!!!’ Clarkson is larger than 90% of British farms.
Could it actually be true that he is not what he purports to be??
Did anyone know this?! Why didn’t you tell the rest of us??!?!
EDIT…lolz at posting this in the Mo thread…I wonder if he owns a farm??
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Income from second home or HMO rental should probably be hiked up.
Got a call from a letting agent, and just made up a quotation for refurb of old single glazed sash & case windows in an HMO.
Property is a bit of a shithole, and the windows are letting storm Bert in like water through a colander.
Poor lad who let me in was wrapped up like the nook of the north, and paying £1000 pcm for his draughty room.
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Agree with this, and it’s a good example of targeting wealth that can’t be offshored.
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