James g says:
September 5 2015 at 6:14 pm
The US massively reduced government spending after WW2 and ran a large surplus for a few years.
Richard Murphy says:
September 5 2015 at 6:31 pm
We spent a great deal and reduced debt
That’s the advantage of spending a lot – it produces surpluses
UK Total government spending:
1945 £7 billion
1946 £6.5 billion
1947 £5.3 billion
1948 £4.7 billion
1949 £4.6 billion
1950 £4.8 billion
Figures are not inflation adjusted.
GDP went from £10 billion to £13.3 billion over the same years, so the fall as a percentage of GP was even higher than the nominal one.
Net public debt went from £21.4 billion to £25.8 billion.
So, we didn’t spend a lot and we didn’t reduce debt.
Is there no beginning to this man’s knowledge?