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Cameron - Do Not Pass Legacy Of Debt To Your Children

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http://www.bbc.co.uk/news/uk-30773974

Prime Minister David Cameron is to urge voters in the forthcoming general election not to pass on a "legacy of debt" to their children.

He will focus on tackling the deficit in a speech launching the first of six themes for the Conservative manifesto.

BBC correspondent Ben Wright says the speech sets out a policy of ending the deficit with spending cuts, not tax rises, while raising NHS spending.

Labour says the Tory deficit plan is "extreme and ideological".

Mr Cameron will say voters face a choice of "staying on the road to recovery or choosing the path to ruin".

He will also say: "When you look at the children you love, do you want to land them with a legacy of huge debts? Do you want to limit their future, to make life more difficult for their generation, because we refuse to do the right thing in our generation?

I can sense Frosties being spat out all over the land...

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Every generation consumes the goods and services which are produced in the economies of their time. Its just not possible for us to steal anything from future generations. Nor can we leave them much that will be directly useful to them except whatever it takes to ensure their future economy is in as good a shape as possible. So a good education system, a good health system, good housing stock, a good transport system, a clean and healthy environment etc etc. There is certainly no point saving up money on a national level and leaving them a pile of Government IOUs. Those IOUs would be just as inflationary, when used, as if they printed their own.


So whether their economy will have a surplus of 3.5% or a deficit of 3.5% is neither here nor there by comparison to the other problems they will have to face such as resource depletion, the adverse effects of climate change, robotisation and so on.

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Every generation consumes the goods and services which are produced in the economies of their time. Its just not possible for us to steal anything from future generations. Nor can we leave them much that will be directly useful to them except whatever it takes to ensure their future economy is in as good a shape as possible. So a good education system, a good health system, good housing stock, a good transport system, a clean and healthy environment etc etc. There is certainly no point saving up money on a national level and leaving them a pile of Government IOUs. Those IOUs would be just as inflationary, when used, as if they printed their own.

So whether their economy will have a surplus of 3.5% or a deficit of 3.5% is neither here nor there by comparison to the other problems they will have to face such as resource depletion, the adverse effects of climate change, robotisation and so on.

How about a national debt of a trillion pounds? Nah doesn't really exist. Those pension funds and international sovereign entities aren't going to want paying. Just imaginary as you say. Edited by Si1

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So labour accuse it off being ideological

As opposed to what? Using the national debt to buy an election or two?

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From memory on office for budget responsibilty forecasts private sector debt is set to rise but yeah public sector deficits are forecast to fall but ttotal public sector net debt is forecast to rise for a while yet. So in conclusion I am not really sure what is being reported.

I think tax rises are coming. Council tax, business rates and VAT. Probably inheritance tax through fiscal drag.

Edited by Ash4781

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But the plan set out by the OBR entails heaping the public debt onto private individuals...like student loans, housing etc.

How does he square that circle?

The ONLY people who can pay debt off IS the Private sector.

In any case, much of the deficit is the simple reissue and payoff ( recycling of existing debt)

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The inter-generational impact is usually invoked by the mainstream with regards to fiscal deficits. It’s silly, as it is based on Ricardian equivalence, and the maths behind Ricardian Equivalence simply does not work. So Cameron is either a fool or a liar. [my money is on the latter]

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So, now its official.

DEBT DOES MATTER

It only matters that people spend it......buy now pay later, 0% interest roll it over and over and over, with a bit of luck it might just disappear. ;)

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I use to believe what Dave Cameron said was true. I thought house hold debt was like government debt. I have had years to think about it and now I think it is total b*****Ks. They could pay off the government debt tomorrow you Know how.

Any one that thinks that dave Cameron is right should start listening to the people that think he is wrong and try and get your head around the subject.

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I woud say running down the infrastructure is very much stealing from the next generation.

Don't forget the selling it off in the 80's!

http://www.nber.org/papers/w15639

Above 90% debt to GDP ratios impacts growth.

http://www.peri.umass.edu/236/hash/31e2ff374b6377b2ddec04deaa6388b1/publication/566/

Does High Public Debt Consistently Stifle Economic Growth? A Critique of Reinhart and Rogoff

O no it doesn't.

Does the debt matter, who knows but luckily we have leaders more than will to bet everything it doesn't.

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Governments don't like talking about the economy and how the monetary system really works.....they like to avoid the subject, mislead, confuse and keep the people in the dark.....not exactly open, honest and transparent....hey ho. ;)

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Governments don't like talking about the economy and how the monetary system really works.....they like to avoid the subject, mislead, confuse and keep the people in the dark.....not exactly open, honest and transparent....hey ho. ;)

+100

Low government debt help the rich. The government is owned by the rich. Having the Government spend less into the economy means that the debt slaves have to jump higher to get what money there is.

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I don't think that is true but it can seem like that.

Rich/people don't like paying taxes to fund government spending.

But basically, a lot of the private wealth is created by government spending into the economy. As bloo says, there is only one way that public debts can be paid off (and it is not by those without money). It is just that the rich/people want the benefits of government deficits but not the bill.

Churchill in a speech in 1909: "Roads are made, streets are made, railway services are improved, electric light turns night into day, electric trams glide swiftly to and fro, water is brought from reservoirs a hundred miles off in the mountains – and all the while the landlord sits still… To not one of these improvements does the land monopolist as a land monopolist contribute, and yet by every one of them the value of his land is sensibly enhanced."

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How about a national debt of a trillion pounds? Nah doesn't really exist. Those pension funds and international sovereign entities aren't going to want paying. Just imaginary as you say.

Unfortunately much worse than that. Current national debt closer to £1.5 trillion. Pension liabilities - FIVE times that (7.1 trillion from latest ONS figures - much of this currently unfunded). Who knows what other future liabilities aren't accounted for in those figures.

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Churchill in a speech in 1909: "Roads are made, streets are made, railway services are improved, electric light turns night into day, electric trams glide swiftly to and fro, water is brought from reservoirs a hundred miles off in the mountains – and all the while the landlord sits still… To not one of these improvements does the land monopolist as a land monopolist contribute, and yet by every one of them the value of his land is sensibly enhanced."

Worth repeating. ;)

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