Government Debt Interest Repayments

kabayiri

Rochdale_Pioneers wrote: »

The other thing to consider is what the opposition are desperate to ignore - the economy will recover, and tax revenues will pay off the debt. As they always do.

I can accept this to a point. Growth in economy is a great way of increasing revenue.

But what kind of growth would we need to say halve the deficit in say 10 years. Does anybody here know?

How about an honest range of growth projections, from pessimistic to middle-ground to optimistic. That combined with its effect on deficit would be useful.

Something like 60% of the FTSE 100 income comes from overseas earnings. This is part of the reason why its performance seems detached from the economy. I suspect a lot of these companies are going to find ever more creative ways of minimising their tax bill.

Lest we forget, from Barclays last figures, they managed to reduce their effective corporation tax rate by 1% from the previous year. This is great for the recovery of Barclays, less good news for the treasury.

smartn

Rochdale_Pioneers wrote: »

The other thing to consider is what the opposition are desperate to ignore - the economy will recover, and tax revenues will pay off the debt. As they always do.

I admire your optimism!

Mr_Mumble

smartn, the government also borrowed an extra £1,000 on your family's behalf in September. :eek:

Rochdale_Pioneers wrote: »

The other thing to consider is what the opposition are desperate to ignore - the economy will recover, and tax revenues will pay off the debt. As they always do.

There is no "opposition" amongst any major politicial party. Conservatives, Labour and Lib Dems all estimate that the structural (i.e. after taking into account cyclical changes in tax take and benefit payments) deficit is between £90bn and £120bn. With a deficit of £175bn there is already the expectation of an economic recovery built into estimates.

Generali

smartn is taking into account debt he's servicing on behalf of people that don't work - the 2 kids that are implied in the calculation, possibly also the OH depending on whether (s)he works or not.

Of course by having kids, smartn is part of the problem (children are expensive in healthcare and educational services provided by the state) and part of the solution (hopefully smartn's kids will join the workforce and then their taxes can service the debt).

Perhaps a law could be passed increasing MP's wages but at the same time increasing the share of the national debt their children are obliged to repay. Perhaps that would concentrate politicians' minds about the impact on the next generation of their actions.

Thrugelmir

Rochdale_Pioneers wrote: »

The other thing to consider is what the opposition are desperate to ignore - the economy will recover, and tax revenues will pay off the debt. As they always do.

Yes it will recover. The estimates are that UK Plc has lost £80 billion of output in the recession though. This could take 10 years to regain. So the use of the word recovery is only in the terms that output is increasing from a low level.

The loss of £80 billion results in a huge loss of revenue for the Treasury. In the form of a decline in Corportation tax, VAT, Income Tax, National Insurance etc. So tax revenues wont pay off the debt.

Like a household having 15% less disposable income. The Uk has to tighten its belt.

I do expect the Labour party to come clean at the time of the election. At the moment there's no point in giving the populace the bad news seven months prior.

leveller2911

Rochdale_Pioneers wrote: »

The other thing to consider is what the opposition are desperate to ignore - the economy will recover, and tax revenues will pay off the debt. As they always do.

Your quite right Rochdale.The economy will recover ,eventually.

But if Gordy Broon hadn't spent the best part of the last 10 year Jerking off bankers and regulating them instead, maybe ,just maybe we would have a little in the "Rainy day" fund to lessen the inpact of the recession and quicken the recovery.

mbga9pgf

and tax revenues will pay off the debt. As they always do.

Erm, no they havent. They have been increasingly swallowed up with increased interest payments. We are now selling gilts to pay down interest on our old debt!

thriftybabe

Yikes not looking forward to what is going to happen after the election! Think I will disappear for a few years!

Generali

s

thriftybabe wrote: »

Yikes not looking forward to what is going to happen after the election! Think I will disappear for a few years!

See you on the beach thriftybabe:



(Jervis Bay where we spent last Easter)

purch

Gens the one wearing the "water wings" :eek: