I cannot understand why people would argue that the status quo should be maintained, when all this means is that much deeper cuts will be needed in the future to prevent us from state bankruptcy
I think mandatory economics lessons in schools would be useful - if more people understood how a balance sheet worked, this country might not be in the mess it is in
Indeed, if only Osborne had received even a basic education in economics instead of studying history. How different things might be.
One of the major reasons that MOST governments are in debt boils down to appeasing tax payers even in times of war and major crisis plus the fact that almost all government spending is based on mickey mouse money. Money that is debt financed through government bonds. The government issues IOUs in return for printing currency. This causes inflation, John Maynard Keynes said that "By a continuous process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method, they not only confiscate, but they confiscate arbitrarily; and while the process impoverishes many, it actually enriches some"
Should the government continue to use mickey mouse money to spend on good causes? or should they be looking at ways to stimulate the economy and extract a fair rate of tax from all people especially those who can most afford it? I think the latter because the former is bound to end in tears.