Rowanhart
Sigh. Trying to explain how international monetary markets work to smeone who doesnt want to believe it. But here we go.
It's not a matter of belief, it's a matter of basic, uncomplicated mathematics. If you take out loans, you have to pay them back.
In order for the market to survive there has to be a certain amount of borrowing and lending between nations and banks. The IMF recommend that this is between 1.5% and 3% for first world countries.
Ahh, now I understand the confusion. You're mixing up "uncontrolled public sector spending to buy votes" with "a certain amount of borrowing and lending."
For much of Labour's term we ran at the lower end of that scale.
For every year from 2001 to 2010, Labour ran a structural deficit. This meant that the national debt grew.
The capital expenditure programme of rebuilding collapsing schools and investing in new infrastructure in the fire service, as well as other, what I consider, worthwhile causes (like increasing the number of working class kids in Further Ed) pushed it towards the 3% mark, but it was very much affordable debt.
Most of those schoolznospitals have been built under PFI. That means we haven't bought them yet. We'll be paying for them for 40 years. That "capital expenditure programme" wasn't anything of the sort.
No debt is 'affordable'. You're making your children pay for you living the high life. It's a crime.
A bit like a mortage for the majority of us. We are all living In debt but it is affordable and because we do we help keep the banking system going.
Fantasy economics. It's nothing like a mortgage. It's like taking out a huge loan to buy yourself a speedboat, and then maxxing out your credit cards to pay off the loan.
The taxpayer now has to find £60Bn a year merely to service the interest on the country's debt.
^In terms of public sector pensions they affordable in that they are costing the taxpayer less in terms of GDP. www.newstatesman.com/blogs/the-staggers/2011/11/public-sector-strike^
The New Statesman's article is the same sort of fantasy economics that claim that running up debts is good for the country.
Now your comment about private sector workers funding public sector. Well many public sector workers (teachers, nurses, soldiers, etc) are paid far less than there private sector counterparts. A nurse in the private sector would earn more and would be able to pay their own pension. As would a teacher.
Average public sector pay is higher than average private sector pay and has been since around 2006. This doesn't include the shorter hours, longer holidays, longer sick leave and pensions.
What your comment smacks of is childish "why should you have what I don't?!" Why not fight for better pensions for the private sector as the real ticking time bomb in this country is how few people are going to have a decent pension and what that means for society? But instead you try and destroy the pensions of those who do. Short sighted economic illiteracy!
I think you have to be quite a long way to the left to classify fiscal probity as 'childish'. And 'short sighted'?? I'm not the one looking at the last decade and saying "everything's fine". Everything is NOT fine. Everything is fucked.
This country is going to have to suffer at least two decades of spending cuts in order to undo the damage your precious Labour party did. It was unforgiveable.