| Topic: | Re:Re:Re:Re:Re:Re:Re:When did the Country live within its means? | |
| Posted by: | Will Watson | |
| Date/Time: | 16/08/15 10:18:00 |
| Of course it matters. As the amount of debt goes up the the cost of servicing the debt goes up too. There is a double whammy that as the level of the debt goes up the trust of the creditors goes down and so they demand higher interest. The cost of this higher interest on larger debt eats into what the government can do with the income they get from tax. The so called "austerity" we live in under the current government would be as nothing compared to what would happen if the debt level was allowed to grow - see the Greek situation. Personally I would prefer tax to rise together with continued budget cuts to get things under control. |