is it possible to be a global grant bovey?

Generali

ninky wrote: »

probably talking to myself here but let me see if i've got this straight....

so the government borrows money from its own people to pay for the public services its people? in turn those people expect not only the services but their money returned with interest - and yet more services in the future?

isn't that a bit like anthea turner lending bovey money so he can buy her a birthday gift and her expecting not only the iou to be settled from who knows where but to get an even bigger birthday present next year?

madness.

I would say it's more akin to Grant Bovey setting up a loan in his children's name and then using the cash to employ people to work on his estate then expecting his kids to take responsibility for the debt when he gets old but I think we pretty much agree.

I certainly agree that it's madness! The Government shouldn't be routinely borrowing money to pay for services. That's what taxation is for. I can see an argument for countercyclical spending, although I don't completely agree with it. I can't see why Tory and Labour Governments alike have thought it a good idea to spend more than they take in tax etc almost every year since the 1960s.

ninky_2

Generali wrote: »

I would say it's more akin to Grant Bovey setting up a loan in his children's name and then using the cash to employ people to work on his estate then expecting his kids to take responsibility for the debt when he gets old but I think we pretty much agree.

I certainly agree that it's madness! The Government shouldn't be routinely borrowing money to pay for services. That's what taxation is for. I can see an argument for countercyclical spending, although I don't completely agree with it. I can't see why Tory and Labour Governments alike have thought it a good idea to spend more than they take in tax etc almost every year since the 1960s.

presumably govt borrowing originated from wartime....when it became popular in peacetime i don't know. i guess it probably had something to do with democracy and the need to keep the electorate happy.

Generali

ninky wrote: »

presumably govt borrowing originated from wartime....when it became popular in peacetime i don't know. i guess it probably had something to do with democracy and the need to keep the electorate happy.

It solves an age-old problem. People like consuming Government services but they dislike paying tax. People vote for things they like and against those they don't.

If you give people the services without making them pay, they vote for you because you are giving them what they want.

ILW

Generali wrote: »

It solves an age-old problem. People like consuming Government services but they dislike paying tax. People vote for things they like and against those they don't.

If you give people the services without making them pay, they vote for you because you are giving them what they want.

Until it all hits the buffers.

ninky_2

Generali wrote: »

It solves an age-old problem. People like consuming Government services but they dislike paying tax. People vote for things they like and against those they don't.

If you give people the services without making them pay, they vote for you because you are giving them what they want.

you are also creating wealth in the form of interest payments for the people who lend you money and therefore a whole new credit stream. particularly when the real people who have to pay for it haven't been born yet (i.e. future tax payers).

however i guess the problem for me is the people who seem to be having to pay back the debt in this case are the ones who can least afford it and the ones set to benefit from the strengthening of the national credit rating are (to a certain extent) the ones who least need it.

surely pension funds should not be basing future growth on national debts accrued to pay for public services?