Guardian economics

The national debt has ballooned to £1.6tn, equivalent to 79.6% of GDP, and is forecast to keep rising for 2018. This vast sum is offset by wealth, largely in bricks and mortar, of more than £8tn.

Isn’t that cute? He’s compared what the government owes to households (including foreign ones) to the net assets of households.

It might be worthwhile to compare the government’s net asset value to its borrowings but to the populations’?

This is also pretty good:

Council tax £34bn
Any talk of reforming the only annual tax on property appears to be on the back burner despite a review of property values being 20 years overdue.

The good bit being that he’s already said:

Business rates £30bn
This tax on ​​premises

Premises/property are pretty goo synonyms, aren’t they?

It’s also pretty easy, given the way it’s all laid out, to balance the books.

Transport £35bn
Industry, agriculture and employment £23bn
Housing and environment £31bn
Other: including culture, sport and international development £53bn

Kill off all of those an we’re peachy, no?

10 comments on “Guardian economics

  1. Abolishing the state circuses (circusii?) mentioned above would save 142 thousand million. An additional real bonfire of quangos and fake charidees/NGOs would easily mean the state could stop borrowing altogether.

    Don’t hold your breath tho’.

    They will stop only when reality stops them.

  2. Other: including culture, sport and international development £53bn

    Seriously? Fucking hell, that is a colossal amount of money spent on fripperies. I enjoy sport and have occasionally brushed up against culture but how is all that worth £53bn of taxpayer money?

    ‘Austerity’. Laughs.

  3. “will claw back some of the billions of pounds lost”

    If you can claw it back it hasn’t been lost.

    Clearly a basic concept, realisation of gains/losses, is too difficult for the author.

  4. Re the national balance sheet bit of the above, this (Table C for end of 2014) illustrates clearly the national position:

    https://www.ons.gov.uk/file?uri=/economy/nationalaccounts/uksectoraccounts/datasets/thenationalbalancesheetestimates/current/previous/v2/nationalbalancesheet2015tables1_tcm77-425494.xls

    £8.5 tn of assets, mostly dwellings, buildings and structures.

    Then the government debt part is all part of the “net nil” financial assets / liabilities part below (split between loans, deposits, equity & investment, insurance, etc..

    It shows it all by category – eg, government, companies, households, etc (the columns) – which gives a pretty clear picture. Even if the numbers go up / down, it doesn’t change its undelying shape from year to year.

    The national debt has ballooned to £1.6tn, equivalent to 79.6% of GDP, and is forecast to keep rising for 2018. This vast sum is offset by wealth, largely in bricks and mortar, of more than £8tn.

    So yes, it doesn’t really suggest he understands it!

  5. He’s comparing it to wealth of households because from his point of view it’s all the government’s wealth anyway.

    You didn’t build that; it’s not yours. Everything for the state, nothing outside the state.

  6. FMoS is correct. We don’t speak Latin or Greek. It’s why people who think the plural of hippopotamus is hippopotami are wrong (and that wouldn’t be right even if we did speak Greek; it would be more like ιπποιπὀταμυ hippoipotamu.)

  7. And it claims to be a list of where the UK Government gets its income, but includes Council tax – which is *NOT* government income, it’s council income. As business rates used to be before the government stole it in the 1990s.

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