13
UK faces £33bn hole in finances or return to austerity, thinktank says
(www.theguardian.com)
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
this post was submitted on 04 Jun 2024
13 points (100.0% liked)
UK Politics
2886 readers
117 users here now
General Discussion for politics in the UK.
Please don't post to both [email protected] and [email protected] .
Pick the most appropriate, and put it there.
Posts should be related to UK-centric politics, and should be either a link to a reputable news source for news, or a text post on this community.
Opinion pieces are also allowed, provided they are not misleading/misrepresented/drivel, and have proper sources.
If you think "reputable news source" needs some definition, by all means start a meta thread. (These things should be publicly discussed)
Posts should be manually submitted, not by bot. Link titles should not be editorialised.
Disappointing comments will generally be left to fester in ratio, outright horrible comments will be removed.
Message the mods if you feel something really should be removed, or if a user seems to have a pattern of awful comments.
[email protected] appears to have vanished! We can still see cached content from this link, but goodbye I guess! :'(
founded 1 year ago
MODERATORS
it's right wing bullshit.
The UK is never limited in the amount of £ it can issue to cover govt deficits. Read a textbook. Issuers of currency do not borrow i that currecy. Debt and deficits have economic impacts, but there is no hard limit.
The only reason for austerity is that rich twats want austerity so they can continue their insatiable greed.
Yep. Talk of "the nation's credit card" being "maxed out" has caused so much damage to the country.
I think it those economic impacts that people want to avoid, though.
The consideration should be the cost of debt servicing relative to the size of the economy or the state budget, not some arbirtrary number auch as debt size as percent of GDP. As you say, what matters is the effect. If it's cheap to borrow money, and you're spending that money on something such as infrastructure investment with a positive ROI and a good multiplier effect, then it makes sense to borrow.