2 thoughts on “The real level of UK government debt is around £4.8 trillion”

  1. Posted 14/06/2010 at 10:40 | Permalink

    This analysis is often criticised (eg by Martin Wolf) on the grounds that the next generation will be much better off in any case and that we do not focus on the assets we leave behind. Perhaps it is worth anticipating those criticisms. With regard to the second, Nick Silver is only referring to government liabilities – therefore the relevant asset base is government-owned assets. These will be much smaller than the government liabilities that have been computed. With regard to the first, it has to be said that the more sophisticated inter-generational models show the UK in a very poor light. There is a real and substantial burden being left to the next generation.

  2. Posted 14/06/2010 at 19:25 | Permalink

    Permit me a little sarcasm.

    What we need is mass unemployment! A wasted generation of young people, preferably two generations! Cut, cut and cut again! Crash the economy to a GDP of 1 trillion pounds a year. Strip away the last remnants of manufacturing industry. That’ll increase the debt-to-GDP ratio to 5:1.

    Then we could sell ourselves into perpetual slavery until we’ve paid off every last penny of the debt!

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