Short Economic Statement
The 3 main parties are all talking about the ‘deficit’ as though it is the National Debt. It’s not. It is the shortfall between the amount the government has coming in and the amount it spends.
Constant talk about reducing the deficit merely serves to pull the wool over the eyes of the electorate since the debt continues to increase. It will be half as much again in 4 years under current deficit reduction proposals by the main parties. The interest on the debt will have grown to £57 billion (from £37 billion at present).
When the value of the debt exceeds the net worth of the taxable earnings of the total number of workers, the debt can only be further secured by providing another ‘asset’ ie. more workers to tax – via immigration.
The solution is not to cut services, or increase tax revenues but to stop the borrowing. As a nation, we were able to ‘print’ £200 billion to ease the banks. If that money was good enough for the banks’ own use, surely it is good enough for the nation’s creditors too. We would be far better served by ‘printing’ £200 billion each year for the next 5 years and abolish the national debt.