Wednesday, 4 December 2013

Britain must face its household debts

Managing the total national debt is the government's job. 

The Tories economic credentials have been built on a carefully crafted narrative around cutting Britain's debt. To the average person this seems to be the public debt. We were told the public debt level was unsustainable because of too many welfare benefits abused by too many, and a large government bloated to the point of bursting.  So the people thought hell we need to eat out less, buy cheaper nappies, pay for university tuitions and put on a fleece in the salon instead of turning the heating like in the irresponsible years before 2008.  Indefinite austerity is necessary to cure these excesses of the past, no mater who's guilty and who pays for them.

Tough bit just. Touching to tears the British solidarity with its wise leaders.

The trouble is the government has regularly ignored the corporate debt and the household debt.  In essence, big corpo are sitting on piles of cash and enjoy bumper profits helped by historically low effective tax rates, while smaller companies on one hand have not reduced their debts, and on the other hand cannot invest because they don't get loans from the banks.  

The consumers are tricked into amassing more debt in the form of mortgages and consumer credit.  The polarisation of debt is appalling, a consequence of the net outflow of wealth from the poor to the rich.  This calls for an honest picture of the debt in the economy and government preoccupation for their world-record levels.  

It is the government job to bring down all debt components and grow the economy through investment and fair wealth distribution.

Britain must face its houss. ehold debts - -11 e3-848ehhqinable i-00144feabdc0.html

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