【正文】
ey into real estate. For millions of Americans this only confirmed the culture Alan Greenspan had been promoting debt is good. And if he turns out to be wrong well, we all had fun in the meantime. Discussing costs (page 52)CA= Cost accountant GM= General manager CA Look, we’ve got to do something. Doing nothing is not an option. Our margins will just get squeezed more and more. GM OK. What do you suggest?CA personally, I’d remend cutting the wage bill either by laying some people off or by freezing salaries. GM Neither of which are going to be very popular options. CA No, but the alternatives are probably worse: reducing material costs will definitely have an impact on product quality and cutting back on advertising expenditure is only a shortterm solution it will hurt in the long run. GM No, I see that. What about administrative costs or other overheads? Instead of cutting staff, we could try and do something about getting our energy bills down for example. CA I’ve already done as much as I can in those areas. I have thought about this a lot and for me, the only real solution is to tackle labour costs. It may be painful, but the advantage of it would be that, once done, we could get back to concentrating on selling. GM OK, I hear what you’re saying, but I think it might create more problems than you think. I’m going to go away and think about it… see if there is an acceptable way of doing it. Exam spotlight, Key skill (page 54)We are accused frequently of doing nothing about the ageing population and the consequent hole on pension funds. But you have to understand that, at the moment at any rate, there are no popular solutions to this problem. Either we raise the retirement age or we increase taxes on working people. Neither of these is a vote winner. I think a lot of us in government are hoping that if we just hold on a bit, then sooner or later another solution present itself. Exam spotlight, Exam practice (page 55)1 I don’t believe in the capital markets. For a start they are unpredictable and for another thing, not everyone the possibility to take such risks with their money. I have always been of the view that you pay taxes through your working life in order to enjoy certain benefit from the state and certain protection against difficult times. For exam