.I like to blame New Labour for a lot but wasn't this black hole down to the financial crisis of 2008, to blame the Labour for a world crisis of capitalism is absurd.
.Cap on Benefits, Bedroom Tax-
https://www.theguardian.com/society...tax-three-quarters-cut-back-food-dwp-research
The problem is, as the Tories like to repeat as mantra, that Labour didn't run a budget surplus even before the financial crisis.
http://www.debtbombshell.com/britains-budget-deficit.htm
It's just not a sensible way of running a country, and this applies to any of them. USA, UK, Germany, Japan, etc.
So, why can't we just borrow money ad infinitum? After all, it's perfectly common to get a mortgage... and then another one and another one, only stopping when you die. And the UK Government doesn't have a life expectancy, so they can borrow money forever?
You can, and that's fine. But doing this is a perfect way to create brutal and crippling inequality.
You could view the UK Government as the owner of much of the UK Wealth, of which, every UK Citizen is an equal shareholder. As the UK Government gets richer, we all get richer. As the UK Government gets poorer, we all get poorer. The Tories say that Labour should have "put away money for a rainy day", but I think it's even more fundamental than that...
Norway has their
oil fund. An $892 billion fund that helps pay for the running of their country and will help even further in future generations. They are by no means, the
only country to have one of these. Lot's of countries have them. They simply use the money to invest in the global market, and as
Warren Buffett knows, the value of the fund will increase by approximately 7% above inflation. That doesn't sound like much, but over 35 years, in grows in value by
10x above inflation. Over 70 years, the fund it grows in value by
100x above inflation. So this sounds like a pretty nifty thing to have, right. Could help pay for country. Just like a pension, put £1000 away today, and take out £10,000 when we retire...
Well the
UK doesn't have one of these. We don't have a fancy wealth fund. We've been one of the richest countries for a long time, (occasional periods of crippling debt when we had to rescue a King or fund a War aside), and yet we have no super-kitty kept in reserve. And we're a bit short on fancy natural resources like oil.
Instead, we're taking the opposite approach, borrowing more and more money and putting that debt onto future generations (partly us, partly our kids). Maybe we should sell off the crown jewels. Privatise the Royal Family. Get sponsorship from Barclays.
But all of this is sad really. The rich will become super-rich as the money they hold doubles, and doubles and doubles again. The poor will become poorer as the debt we hold doubles and doubles and doubles again.
Debt is a useful tool; Want to build a fancy bridge that will bring in £1m a year... borrow £5m to build it. Great! But we are all going to get poorer and poorer as the rich get richer and richer.
Note - I am not saying we need austerity. Cutting back on spending when you need growth is fundamentally wrong too.
Edit x1 - I should point out, Labour were the ones to most recently
propose a wealth fund