We must cut debt
ON May 14, London will see the ‘Rally Against Debt’ march, which proposes the point that if we do not get Britain out of debt, we will rapidly end up bankrupt like so many other European Union countries of late.
If that happens, we will be forced into a fiscal austerity that makes the Government’s current cuts look exactly what they are – tiny!
Here are the reasons we must cut back on Britain’s deficit:
Our budget deficit this year is just under £150bn.
The Government is borrowing almost £20m per hour, every hour, throughout the year, just to finance its ongoing expenses.
We’re paying £120m per day in the interest on debt that we have already built up.
Without spending cuts, Britain would be facing the fiscal meltdown we have seen hit Greece, Portugal and Ireland.
The total spending cut is only a few per cent over the next five years – 2008’s level, to be precise.
The last government raised public spending by 60 per cent in real terms, and borrowed huge sums of money even when the economy was booming.
The public sector grew unsustainably large as a result, and now its excesses have to be reined in.
Evidence suggests that stimulus spending has no impact on growth in countries with open economies, floating exchange rates and high levels of accumulated debt. Countries like Britain, that is.
So this is why I fully support the Rally Against Debt. It makes more economic sense, the evidence supports it, and unlike the Socialist and Labour parties and the misinformed and Trotskyite groups such as UK-Uncut, this march is to promote debt reduction of the UK economy.
Anyone who has ran a business or just ran a family budget knows you can’t spend indefinitely.
At some point you have to get the debt under control or declare bankruptcy – and I sure as hell do not want to live in bankrupt Britain.
Dennis Thompson,
Regent Court,
South Shields.
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Thursday 23 February 2012
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Comments
There are 10 comments to this article
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tynesider
Saturday, April 30, 2011 at 08:03 AMIt is not av we should be voting for come election day it is to oust the corruption & greed out of politics , stevecolborn has my vote he has done his homework but i would say is those who argue for capitalist,corruption have indeed something to hide.
stevecolborn
Friday, April 29, 2011 at 05:00 PMBy the way post 5 should have read,"we do NOT want to sieze power". And Capitalism does not work for the vast majority of the worlds, over 6 billion population, who live in abject poverty. It works, as it is intended to work, for no more than 5% of the worlds population. The rest of us are alienated from the very means of producing and distributing the things we need to live and are merely adjuncts to the process of production.
stevecolborn
Friday, April 29, 2011 at 04:52 PMWell Bohemian, Polly wasnt talking about The Socialist Party, she was talking about Militant Tendency who changed their name to "Socialist Party". I could write on the back of a stamp what Polly, Militant, SWP, Miliband et-al know about Socialism and still have room for a short poem. SocialismCommunism, is not merely another way of running Capitalism, it is a totally different socio-economic system, not the STATE-CAPITALISM of the old USSR, China, Cuba et-al. Once this is understood then a discussion about the merits and demerits of an alternative society can be undertaken and not before.
bohemianblogger
Friday, April 29, 2011 at 03:21 PMHave to agree EUvil, Socialists, just like Ed Miliband have a dream, isn't it about time they woke up? Polly Toynbee of the Financial Times put it best when she stated the Socialist Party are living in a Utopian political dream state. Put it this way if it wasn't for capitalism people wouldnt have an interent or a computer right now. A rising tide raises all boats, capitalism makes the rich richer, but it also raises the poor out of poverty. Has no one studied history or economics, even basic finance? Take a look at the Socialist website and be honest when you say those policies will not deliver a crash Greater than 1929 America! Then consider cutting the spending by 0.6% which is all the coalition are doing. Reduce Britains debt, we reduce British taxation which is paying for the interest payments on debt, this stuff isn't rocket science, its GCSE maths!!
EUvil Empire
Thursday, April 28, 2011 at 09:53 PMDennis Thompson, sir I salute you and your indefatigueability in defiance of the soapdodging Communists propaganda. I compare your valiant struggle to that of the suffragettes, apartheid, and the civil rights movements that have gone before you. stevecolborn,yawn, I find your tirade a little bit fuzzzzzzzzzzzzz.
stevecolborn
Thursday, April 28, 2011 at 12:54 PMAs someone who has read Marx and understands capitalist economic theories, I find your tirade a little bit funny. As a democrat and belonging to a democratic party, we do want to sieze power. Merely get rid of Capitalism. Indeed, if the society we envisage were to come about, The Socialist Party would cease to exist, as there would be no further point to its existence. We are neither leaders nor led.. Finally, isnt it funny that anyone who disagrees with this insane, inequitable, murderous, Capitalist system is labelled a "looney leftie", whereas if you support this insanity, you are supposed to be sane? Funny old world.
Hebburnlee
Thursday, April 28, 2011 at 10:53 AMThe debt's already there and even if you cut spending, the debt will continue to grow via the interest being applied. Without economic growth, things will only get worse. It's shameful that Cameron has had years to prepare for power, and now that he has it, he hasn't got a clue what to do! Two years ago, Tory Party HQ were already concerned about his lack of policies, but figured he was bound to come up with some so stuck by their man.
tynesider
Thursday, April 28, 2011 at 12:48 AMDennis i could not disagree with you more, Why make the poorest in society pay for the greed and corruption of others? Our children are suffering because of the increase in vat,soaring fuel prices,It seems obvious to me the governments paid activists, the rally against debt faction are another smoke screen to justify theft from the poorest who cant defend themselves this country needs change , fast or we will end up like the good old US of A.
bohemianblogger
Wednesday, April 27, 2011 at 10:45 PMIt's funny how only Marxist wannabes attack basic economic sense and yet if they seized power they patently do not have a clue about economics!!
stevecolborn
Wednesday, April 27, 2011 at 08:38 PMEvery single western econmy run at a fiscal deficit. The UK is'nt alone in this regard, If the condemns are serious about cutting this deficit, stop taking peso's from peasants, and go after the tens of billions, avoided and evaded by wealthy individuals and big corporations. But they will not do this. Funny old world aint it?
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