Quote:
Originally Posted by mattylondon
Governmental debt is quite different to a personal loan / mortgage / house hold budget as we know. Governments don’t really pay back the debt. They just roll it over. Economic growth should reduce the percentage of debt to GDP, making previous borrowings increasingly less significant. It's a tool used by Governments all over. The young and future generations are actually paying the price due to austerity. Austerity does not produce strong economic growth and we have a lost generation due to it. If you have falling private spending and wealth and falling government spending the recession is more serious and longer. Governmental debt is a way of employing under-employed resources in a recession and help the economy to recover.
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National debt is not free. Approx £30 billion paid in interest by the UK in 2015. Austerity is part the result of the government trying (and failing) to reduce, not the debt, but the amount by which the national debt is growing year on year.
This debt is not a benign thing that will simply diminish. It is effectively another tax on every person in the UK. And it will increasingly be so for generations yet unborn.
9th November 2017, 12:29 PM
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