Saturday, 19 September 2009

Public Sector borrowing out of control?


That has been the story this past two days. On the Labour side they are saying the analysts' expected more, so that is all right then.

On the Tory side they show the Government has lost control.

You can't really argue this one, the Government has lost control, but the truth is they lost control of public spending 5 years ago, not last month. This latest catastrophic number is just the end game of the lunatic policy of spending more than we earn even in the good times.

5 comments:

ken from glos said...

A whole new generation of voters have to, yet again, learn a simple truth in life.

Labour always run out of other peoples money.

Mitch said...

As true today as its always been.

electro-kevin said...

NuLab have left us ... uniquely placed.

(I think we're really fucked.)

James Higham said...

As always, the government takes its advice from advisors who are usually connected to the BofE. There is this constant attempt to whitewash the BofE's role in all of this or to skip over it.

That the government even attempts to borrow its way out must either fly in the face of economic advice given to it or else it is as a result of it, being told that they might be able to get away with it just this one more time.

It's not excusing the government but it's equally not letting the BofE off the hook either.

CityUnslicker said...

JH - Quite, many in the City throw their hands up at the behaviour of BOE. It lost control of the economy 2 years ago and has not regained control.