Well done Ritchie!

So, he asks rhetorically:

How many things can you get wrong in a sentence?

In the comments he gets his answer:

A lot, it seems.

“From 1919 until 1970 peacetime debt was higher than now (and the above data fails to take QE into account). The claim that there is unprecedented UK peacetime debt is wrong.” (From Ritchie himself)

Apart from simply ignoring World War 2, you do realise wartime debt doesn’t suddenly disappear when the war stops, don’t you? During the two wars defence spending hit over 50% of GDP alone, pushing total government spending over 100% of GDP. In rough terms each war added about 125% to the debt/GDP number.

Under Labour, pre-crisis the UK had about 40% debt/GDP. We are now around the 90% mark. So it’s the biggest peacetime increase in the debt/GDP ratio, and the biggest ever peacetime budget deficit.

Ouch. Guess Ritchie won’t need to walk into a door to find out what it feels like now.

5 comments on “Well done Ritchie!

  1. So he refutes that Labour ran the highest peacetime deficit with a graph showing we’ve had higher debt in the past? Am I missing a vitally important piece of Ritchielogic?

  2. The very moment you see him making an argument about deficits by posting a graph showing debt is the moment to move on to somebody else, somebody who might know what the hell they are talking about.

  3. Love this onanistic Murphy comment:

    “Alan It is obvious macroeconomics but you have to remember that such things are beyond most economist’s understanding. The Bank of England had to say also all economics text books had got money wrong earlier this year – and in fact that what they said was the inverse of what was needed

    The same could be true for deficit reduction and the interaction of cuts and the deficit. One day someone will say it. But not yet, I fear.”

    LOL classic Murphy!

    To summarise this: All economists are thick and wrong except me

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