Comments by "" (@lonevoice) on "Does Rising Debt Make AUSTERITY Inevitable?" video.

  1. Can we really do much about the size of UK debt? According to latest published government accounts public sector pension debt amounted to 98% of the total gross figure. Some even question whether it should even be included as with many government costs they are just met annually. For example, we don't provide in UK debt for the value of state pensions, we don't provide for the future costs of educating those children currently alive or the future healthcare costs for current UK citizens. All of these four are future liabilities but only one is included in UK debt figures. Then there are UK savings. If you save with a bank then that doesn't find its way into government debt figures but if you buy premium bonds or invest in national savings or buy gilts then these are included in national debt as is the amount of physical cash in the economy. Then on top of this, there is a significant amount of gilts actually held by government, so owing to itself, as a result of QE. These are still included in the debt figures. I do believe that we have scope for investment. We certainly need it in areas such as industry, schools, hospitals, science, infrastructure etc. If there is scope within the economy, i.e. not full employment with usable skills then creating money shouldn't be inflationary and would have to be used in moderation. Beyond that, extra borrowing could be used. The Bank of England will use interest rates to control inflation if necessary. This is better than maintaining austerity with sluggish growth.
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