I think we need some fresh language to get over the significance of the state debt crisis to more people in the UK.
There is no state money. State borrowing is taxpayer borrowing. State debt is the taxpayers’ debt. Every time the government tell us the government will borrow more, that means you and I have to accept responsibility for more debt. Everyone concerned about the level of public indebtedness could help by calling it taxpayer debt.
Individuals know that if you run up too big a debt on your credit card or take out too big a mortgage you have to cut your spending. It’s no good saying you will simply borrow more money to pay the interest on the money you have already borrowed. That way it’s a slippery slope to bankruptcy. You can’t go on borrowing more in the hope you will win the lottery or that suddenly the government will offer you one of their super quango six figure salary jobs which would make the debt affordable. You have to be realistic about your prospects and your means.
So it is when we act together as taxpayers. Only dreaming politicians think that the Uk will one day win the lottery or be offered a big bung by the international community to keep it going. The rest of us know that everything the government borrrows and spends on our behalf is going to have to be repaid one day with interest. We will all have to work harder and longer to repay Gordon’s debts, because they are our debts.
The figures show that families and companies are reining in their spending and reducing their debts. They know they overdid the collective overdraft in the good years, and are now making the necessary adjustments. They are spending less and saving more. It is especially galling for all concerned that at the same time as the private sector is learning to live within its means, the government is busily placing us all at risk by taking on more debt than we can afford. Why did they learn nothing from the private sector debt crisis? Why do they want to do the same again with public debt?
Taxpayers soon have a chance to rise up and make their views known. All should remember there is no state money and state debt. Only taxpayers have money, and the state will want more of it.