The Independent reveals the true scale of Britain’s debt:
The true scale of Britain’s national indebtedness was laid bare by the
Office for National Statistics yesterday: almost £4 trillion, or
£4,000bn, about four times higher than previously acknowledged……
The debt primarily consists of the cost of public sector and state
pensions, and of payments promised to private contractors under private
finance initiatives. It far exceeds any of the figures so far published
for the national debt, the largest current estimate for which is £903bn.
That is projected to rise to £1.3trn by 2015.
This is worth repeating: Slashing benefits to poor people and taking money away from education and health care will not help Britain out of the recession or relieve the debt problem.
Massive re-investment into the public sector is a tried and tested method of stimulating economic growth (look at China, the United States after WW2, and any other country with a dynamic state sector), yet it seems the UK government is doomed to repeat the mistakes of Margaret Thatcher, who implemented austerity measures early on in her government that led to severe stagflation.
We ignore the lessons of history at our peril.
Ben Cohen is the editor and founder of The Daily Banter. He lives in Washington DC where he does podcasts, teaches Martial Arts, and tries to be a good father. He would be extremely disturbed if you took him too seriously.