Government borrowing for last year = £107,700,000,000

That's not a burn, just an explanation.

What would happen if we just stopped spending money we didn't have?

[PyroUK]

Unintentional (as in the case of DJ) burning is still burning.

[PyroUK]

Originally Posted by Matt-EUC

What would happen if we just stopped spending money we didn't have?

The economy and most business would grind to a shattering halt

Originally Posted by Matt-EUC

What would happen if we just stopped spending money we didn't have?

We'd be bankrupt before the end of the year and lots of public services would shut down.

Plus if we paid off all debt and ceased issuing it there would be a large hole where the gilt market used to be.


The UK's never been in the position of having no debt and neither had England since (probably well) before the hundred years war.

It really astonishes me that they said their strategy to reduce borrowing was to increase borrowing.

[Sid Squid]

Huge borrowing...

Hmmm...

What to do...?

I know! Let's make some cuts - that'll be a popular way of easing the problem, no?

State spending = public money = taxes/borrowing.

A stunningly simple equation that too few people want to understand. Nothing is free, everything has a cost. The mindless, endless expectation of, and reliance on, state spending has the greatest price.

Originally Posted by Spank86

The UK's never been in the position of having no debt and neither had England since (probably well) before the hundred years war.

True - maybe it's become a bit of a problem now though?

Legalise cannabis and tax similarly to cigarettes.

Instant billions.

Best way to reduce borrow is to make money. you need to spend money to make money. (is the play school explanation).

The problem isn't necessarily the headline borrowing figure, but what you do with it. If they use the increase in borrowing to help businesses hire apprentices or tax breaks for entrepreneurs who will spend the money hiring people or even certain types of investors, then more business is done. more business means more work need to be done, which means more people need to be hired, so fewer people on the dole.

To give an idea, most big companies will work with between 1 and 3 turns of debt, i.e. up to about 3 times as much debt as their Earnings Before Interest Tax Depreciation and Amortisation. Average government debt of about 1.3 times average earning per earner would not seem to unreasonable (but I could be wrong, I was a corporate banker not a sovereign banker).

Also there is nothing wrong with spending other peoples money. You use their money while they don't need it (i.e. I am 30 and won't need my retirement savings for about 40 years (probably)) in return you give them back a little more then they gave you. difference is what you spend it on.

Also, stop building unnecessary railways!!! You don't need to get from London to Birmingham in 2 hours. We have skype, we have conference calling, we have the internet! What can a business person do in Birmingham that he can't do on the phone in London?

(I forgot where the train is actually from/to I just guessed)