A deficit of truth
Can somebody please tell me why every major political party’s economic plan is centered around deficit reduction? Why deficit reduction and not debt reduction?
Until recently I wasn’t completely sure what the difference was and I don’t think I’m alone in my ignorance. Cameron likes to exploit this confusion and is allowed to get away with outrageous claims like “I’m cutting the deficit and helping Britain get back in the black.” No you’re not! National debt is still rising, we’re more skint now than we were in 2010! If the infamous note be true and there really wasn’t any money left when Labour left office five years ago then the note has now been sold on eBay and the profits invested into a private Political Memorabilia steering group run by Goldman Sachs.
I’ve read precisely three articles about the difference between deficit and debt. It’s all I could manage. But if I’ve got it right then the bare bones of it are DEFICIT = disparity between what money comes in and what goes out, and DEBT = how much money we owe other people. That’s it! The dreaded deficit is simply a measurement, it’s not a tangible amount, unlike the debt which is real money.
Yes, when you’re spending more than you’re bringing in that’s clearly a problem but it seems the Tories’ plan is to cut what goes out, not try to bring more in. And it’s not even like running a deficit is a huge problem. This excellent article explains that running a deficit is common for an economy like ours. The article points out that we ran a surplus between 1998 and 2001, the first time since 1974. Tories love to praise Thatcher for her uncompromising saving of the economy, but all the time she was in government the UK ran a deficit. If it wasn’t a problem then why is it one now?
Instead, is deficit reduction actually an excuse to cut public services and benefits, privatise the NHS and hit the most vulnerable the hardest?
