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Saturday, 22 November 2008

2 1/2% off VAT - waste of time

When shops are cutting prices by 20% and aren't getting big boosts in sales, how will a 2.5% price cut start a spending spree? It won't all get passed on by all retailers, it's not charged on food, which is a big bill, especially at Christmas and for the poor.

He's going to drop small savings in lots of different places, so most people won't feel any better off.

For a fiscal stimulus to work, it has to be so big that it can't be afforded or funded. James Callaghan found this out the hard way. This is pissing on a bonfire - pointless.

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