30 April 2015

Do cuts in public services reduce the National Debt?

What's the UK's  National Debt Today

Given the gigantic increase in the amout the Government borrows on the people's behaf it's difficult to see any economic benefit to the Conservative led UK Coalition austerity plan. 

The National Debt, is the amount the UK owes the Banking System. The country's debt has ballooned from 900bn under Labour to over 1500bn today.  To get this debt down the Conservative Government has decided to cut Public Services, reduce police pensions, cut in-work benefits, ratchet up university tuition fees and has tightened up the rules so that fewer people can claim disability benefits.
This policy is run alongside the Conservative Party ideologically to privatise the Public Sector bit-by-bit. This is an old-fashioned policy may have had some merit in the 1980s - but doesn't appear to help reduce the National Debt?

I've been trying to make sense of it. It seems to me that there appears to be correlation between having too much money and a lack of imagination. Aping Thatcher and unthinkingly privatising public services (and they are - ask any GP) is not a properly thought through Policy, not in economic terms anyway. I see the cuts as, either, a clever way of shrinking the public sector, or simply a psychiatric fixation with Thatcher and the past. I'm not sure the Iron lady would be that impressed...

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