Wednesday, Nov 18, 2009

Comments on Fiscal Responsibility Bill

Adam Smith Institute: Fiscal Responsibility Bill

The idea of this government locking in Fiscal Responsibility with a new law would be laughable if their current irresponsibility wasn’t mortgaging our future. At the moment, Britain has the second highest structural deficit in the developed world. The OECD estimates that, to put our debt back on a sustainable basis, we would need a fiscal tightening of 12.8 per cent of our national income. That is a nearly unthinkable £150 billion of spending cuts or tax rises just to get debt as a percentage of GDP down to 60 per cent, still much higher than just a few years ago.

Posted by swissnic @ 02:05 PM (854 views)
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3 Comments

1. rumble said...

That's a lot of changes to this.

Wednesday, November 18, 2009 05:19PM Report Comment
 

2. Roberto Birquet said...

Frankly the name of this organisation. Adam Smith Institute, inspires me with no confidence in it. The slavish following of his (Smith's) 230-year old theories is a major cause of our being in this mess. And i refer to the economy and housing particularly, not just tax vs spending mess. It has been government whatever this organisation says that has saved us from economic meltdown. The next thing we need is a more sustainable future, but I will take no lessons from them. I thought them idiots when I was at college, and feel justified after the events of the past few years. Boom and bust is not the same as self-correcting markets.

Wednesday, November 18, 2009 06:19PM Report Comment
 

3. paul said...

A monetary responsibility bill would go a long way to preventing the boom-bust cycle too.

The BoE has no interest in the long term sustainability of chasing high asset prices or the impacts of the measures it deploys to keep asset prices high (such as QE). This unfortunately makes them a uniquely irresponsible and yet powerful policy setting entity which eventually will destroy the economy.

Wednesday, November 18, 2009 09:57PM Report Comment
 

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