The percentage of GDP is irrelevant but I'm worried about public services being underfunded and that in 2020 we will most likely be spending more on paying Interest each year than we do on education. There is a large deficit between tax revenue raised and what is spent on public services. All in all a steep population rise has not resulted in a comparative rise tax revenues to cover these services (double the percentage rise 2000-2020) and a shift to low skilled jobs. Do we borrow, cut, tax just or keep on rollin till the bubble bursts?
REFERENDUM RESULTS AND DISCUSSION THREAD
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The percentage of GDP is irrelevant but I'm worried about public services being underfunded and that in 2020 we will most likely be spending more on paying Interest each year than we do on education. There is a large deficit between tax revenue raised and what is spent on public services. All in all a steep population rise has not resulted in a comparative rise tax revenues to cover these services (double the percentage rise 2000-2020) and a shift to low skilled jobs. Do we borrow, cut, tax just or keep on rollin till the bubble bursts?
Parkins left foot
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If we are going to spend more on paying interest than education then the former is going to have to double or the latter be cut in half
Don't really see either of those things happening
Don't really see either of those things happening
Don't know where this idea that we will be spending more on interest than education comes from, let alone that it is "most likely." Even if the £60bn figure you've quoted does come to fruition, this year we are spending £85bn on education so not sure how that fits with your theory.
As for "borrow, tax or cut" that you keep asking, if it was up to me it would be a combination of borrowing and increase in tax. Raise taxes and borrow to ensure that we are funding public services properly. Not sure why you keep suggesting cuts as a solution to funding shortages. Unfortuantely under a Tory government we won't see tax increases or borrowing - it's austerity all the way.
What would you do? Borrow, Tax or Cut?
thehistorymakers
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If you don't worry about debt that we have now, future generations will have to pay the price for this generations incompetence.
What do you think is going to happen?
Nope. We've had much higher debt levels in the past.
National economies arent like households - you can run a deficit forever.
The Saturday Boy
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Just shows how Cameron, Osborne etc have managed to create a narrative that so many are willing to believe and trot out ad nauseum.
Perception about our debt has become more important than reality.
Perception about our debt has become more important than reality.
Paddingtonwolf
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As I said
Debt approaching 275% of GDP
"YOU'VE NEVER HAD IT SO GOOD"
Debt approaching 275% of GDP
"YOU'VE NEVER HAD IT SO GOOD"
thehistorymakers
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In the last hundred years the only time we have more debt than we have now, was because of the 2 world wars. We have now the highest debt we have had in over 40 years.
If we had had no debt before we left the EU and Brexit caused the debt that we now have, the remainers would be telling us that armageddon had arrived.
The Saturday Boy
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But informed people are aware that our current levels of debt are a consequence of a global financial event and not out membership of the EU and not immigration. Leaving the EU will have no discernible impact on either the level of our debt/deficit or how we deal with it. How we approach it was a domestic issue and will remain a domestic issue.
Paddingtonwolf
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HMMMMM
We had higher debt as a percentage of GDP in 1910. Last time I checked we weren't in those world wars then. Drop the debt shit and go back to slagging immigrants.
We had higher debt as a percentage of GDP in 1910. Last time I checked we weren't in those world wars then. Drop the debt shit and go back to slagging immigrants.
thehistorymakers
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Nobody is saying anything else.
thehistorymakers
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As I have never slagged off immigrants, I can't go back to it.
Paddingtonwolf
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Fine. No worries. Slogging is evil, so I am really glad you step away from it
thehistorymakers
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During World War I the British Government was forced to borrow heavily in order to finance the war effort. The national debt increased from £650m in 1914 to £7.4 billion in 1919.
Paddingtonwolf
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I KNOW
So what? Didn't go bankrupt did we?
In 1950 our national debt was around 250% of GDP. Not only did we never default, we also set up the NHS and welfare state. I really wouldn't worry about our national debt currently being around 84% of GDP.
As a government you shouldn't be attempting to run at a surplus, if you do it just means you are taking cash out of the economy.
thehistorymakers
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We had very favourable terms with low interests, from the Americans. That wouldn't happen now.
A lot of our debt is with pension funds. If debt doesn't all of a sudden matter so much, remain would lose one of their main excuses for high immigration, as it was said to be that we never had enough to pay for pension funds.
Or does debt only matter, when it suits you.
Bollocks:
Looks pretty low to me.
Bollocks.
National debt is created when the government issues bonds that are then bought by the BoE - so you have simultaeneous creation of assets (held by the BoE) and cash (held by the government and used to finance deficit spending.
This can happen almost in perpetuity when you have sovereign currency and a central bank. Thats why the debt doesnt matter from a government perspective.
But you're conflating that perspective with the perspective of pension funds - who hold a significant amount of AAA rated debt (indeed they're not allowed to hold anything other than AAA rated securities). Pension funds use these securities as a hedge against inflation and to provide investment growth to provide income.
Where immigration comes in is when you consider the (public) state pension, which is paid for from the contribution of current taxpayers. No-one has a pot with their name on representing their historical payments. Joe Blogss has a state pension that is paid out from the contributions made by the UK taxpayers.
So you've basically made a ham-fisted effort to mix national debt, private pension funds and the state pension, all to try and make a retarded point about immigrants. You're welcome.
Only about 25% of our debt is owed abroad. The vast majority is to the Bank of England and Pension funds. The more we borrow through Bank of England, interest rates will stay low.
As I've said, our debt is only around 84% of our GDP. We are fine.
Why are you linking debt to immigration?
