Increasing borrowing would be incredibly reckless
An insight into how people feel about the current state of taxation
Australian Treasurer, the Hon. Joe Hockey, gives a speech for the IEA
The IEA respond to Vince Cable's speech to the Liberal Democrat Conference
“It beggars belief that the Business Secretary believes that tax hikes and more borrowing pave the way to a brighter future for the UK economy.
“Increasing borrowing to fund big infrastructure would be incredibly reckless. The experience of Japan demonstrates that simply accumulating more debt will not return a country to growth – it just delays the return to growth.
“The economic recovery has proved that it is possible to cut day-to-day government spending without harming economic growth. Politicians must learn from this and go further. With UK public debt now at over £1.3 trillion, it’s vital that politicians continue to reduce spending and borrowing. Vince Cable’s calls must be rejected or the UK’s economic prosperity will be on shaky ground.”
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Notes to editors:
The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.
The IEA is a registered educational charity and independent of all political parties.