Xenia will have a great deal of trouble finding the facts unless she is prepared to rewrite history.
Once again we await the facts on the right. While we wait this 21stcenturysocialism.com/article/sovereign_debt_is_a_capitalist_issue_02079.html is worth a read and sets out very clearly how "small" government shrinks the economy.
"Sovereign debt is a capitalist issue
The claim that ?big government? or ?state overspending? is the cause of our ills puts on a mask of truth by reference to the worsening problem of sovereign debt, which threatens not only the Eurozone but the global economy. The reality, however, is at odds with the right wing explanation"
"It was then that what could be decribed as ?big government? was established in peacetime conditions. The utilities and much of industry was nationalised (with compensation paid to previous owners), and the main institutions of the welfare state were set up and expanded- to the extent that by the mid-1970s, government-managed expenditure (including transfers, ie benefit payments and interest) was almost half of national production, and state spending on investment and services- ie, excluding transfers- had risen to 27% of GDP by 1975- compared to between 10% and 12.5% during most of the years between WW1 and WW2.
Yet at the same time as this huge growth in ?government?, the sovereign debt was reduced so rapidly that between 1946 and 1975 it fell from 252% to 45% of GDP
A similar story emerges when the combined national debt levels of the G7 major capitalist countries are considered; their gross sovereign debt fell from 80% of GDP in 1950 to 35% in 1974, although the state was increasingly involved in owning or otherwise directing the economy, and overall state spending rose very steeply during that period"
The facts speak for themselves, keeping people employed, providing public services, improving wages and tackling inequality, improving social mobility and nationalisation of both PROFIT and not just risk, is the way forward.
When Thatcher came to town, started to deregulate labour and sell off national assets our debt as a percentage of GDP shot up and has remained high there ever after.