| Topic: | Re:Re:So what? | |
| Posted by: | Jonathan Bingham | |
| Date/Time: | 26/04/12 18:43:00 |
| the State is spending nearly 48p of every £1 that the Nation spends. Absolutely crazy. What does this kind of statement really mean?. Does it mean something if you assume that if the state doesn't spend the money then it isn't spent?. 'Cos that's not obvious, it just means someone else may have to spend the money instead. If that person borrows the money off a foreign source doesn't it have the same effect on the economy?. I understand that Greece is in trouble because it's government borrowed heavily from foreign banks for capital projects - but Spain is in trouble because it's industry borrowed heavily from foreign banks. So it doesn't matter who borrows the money, you get it in the neck both ways IF the money isn't invested in such a way as to pay off the foreign debt. If you invest in exporting industries you create jobs AND pay off the debt. |