i'm spartacus wrote:
People cite the amount of borrowing as though the amount is the only thing that matters; the fact is that it isn't. There are two factors to consider in respect of any debt, and the second factor is the ability to service it. The borrowing covers the gap between what the government receives in taxation, what it has to spend on the day to day running of the country, and what it has to pay in interest payments on the debt. Austerity aims reduce the gap between what you have, and what you spend. If you can get to a point where you have more income than expenditure, you start clearing the debt rather than just paying the interest.
DaveO wrote:
No shit Sherlock! If I earn more than I pay I can pay off my debts. Who'd have thought it! Absolutely no marks for stating the bleeding obvious.
So how come despite Austerity the national debt has risen under the Tories to be 83.7% of total GDP at the end of 2016 (from 56.8% in 2009 right after the crash and the massive bailouts for the banks)???
Reasons the Tory government has had to borrow more include increased spending on social security benefits, significant drops in receipts from stamp duty, corporation tax and income tax.
Good grief - quote 1 explains quote 2. I know it’s difficult for you to grasp, but it is so bleeding obvious you missed it ……. Sherlock
i'm spartacus wrote:
Gordon Brown as chancellor inherited what was widely accepted to be a golden legacy from the Major administration; an economy that was actually in balance.
DaveO wrote:
Blair's first government ran a surplus for four years from 1998 to 2001.
And again, quote 1 one explains quote 2
DaveO wrote:
When it did start to increase spending post-2002 it increased spending on health and education by a huge amount and due to years of Tory neglect that was money well spent.( the NHS crisis of 1996/7 was big factor which cost Major the election)
Yes, they spent money they didn't have and increased the public sector to a size that was unsustainable – ie You get the state to employ everybody, and claim that you have full employment
DaveO wrote:
Again, the facts ruin your argument. UK productivity was the worst since records began at the end of 2016. For the first half of the 2000's under Labour it steadily increased to be just 4 points below that of the G7. Since 2010 under the Tories it has made a rapid decline.
Really?
http://www.tradingeconomics.com/united- ... oductivity
DaveO wrote:
What you aren't mentioning is that as a % of GDP the tax take has crashed since 2010 under the Tories.
Really again?
Revenues crashed during the banking crisis, but tax revenue increased to 24.344 % of GDP in the last year of a Labour government - and now they are 25.351
DaveO wrote:
We have more people in work but they are less productive, collect less tax as a % of GDP than under Labour and the government debt has increased under the Tories.
Yes the debt has increased but the deficit is down as already highlighted above.
DaveO wrote:
With high employment the government should be swimming it tax revenues far more than it is, not increasing the national debt.
It is reducing the deficit. It’s a debt-ability to pay thing Sherlock
DaveO wrote:
It isn't because we have a situation despite the economy being larger (GDP), despite more people are working we are earning less because they aren't overall as productive. So we can't afford to pay ourselves high wages and so the tax take as a % of GDP goes down.
But tax as a percentage of GDP is up, not down.
Your position, and the position of your party is to invest in public service, which is a euphemism for expanding the state. People who work for the state are by default, non-productive workers. Expand the state without having the deficit in balance, and the gap between income and expenditure becomes larger. Your credit suffers as you struggle to make the increasing interest payments on your debt
DaveO wrote:
And now you are reduced to making it up. I oppose Austerity because not only is it economically inept but the people who pay for it are the poor and the disabled.
Sorry but you are just a right wing apologist cherry picking figures and taking them out of context. Must try harder.
Sorry, but you are just a left-wing apologist getting all your figures and economics wrong. Just like your party always does in the end.