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At last posters are beginning to move away from espousing their own party political dogma and put forward more constructive ideas on this thread which make more interesting reading. After all, we were told by all political parties in the run up to the last General Election that the pain was coming and now it has arrived. However, how we get growth into the economy is a matter for debate.
Steve’s idea of boosting the housing market is one idea which could be considered and not rejected out of hand. Movement in the housing market is often taken as an indicator of how well or how badly the economy is doing as it reflects the interdependence of business and underpins growth in the economy. For example, when a house is purchased new products are also purchased such as carpets, curtains, lighting, garden equipment, perhaps even a new bathroom or kitchen and numerous other things; the list is endless. In so doing, not only do these purchases create employment in their own industries but each of those industries will be serviced by many other industries and create further employment.
At the moment, the housing market is flat in most areas of the country except for London and the south east and the idea of giving a government subsidy to building and financial help to prospective purchasers, particularly first time buyers, in the purchasing of property in the private sector are possibilities to be considered. I have indicated the private sector rather than the public sector as it is people, who buy in this sector, are the ones who are more likely to have money available to make the purchases creating more employment and thus growth in the economy to some extent.