Ritchie’s debt repayment calculation

So, he’s fiddled with the numbers again to give us this:

So, dismissing this idea as nonsense, let me instead do another variation instead, which is for the period from 1979 to date, which we can truly call the UK’s neoliberal era.

OK.

The result changes slightly from that given by the 70 year data. Now the number of years in which tax repayments took place were the same, but Labour repaid much more. And it is true that in originally priced pre Global Financial Crisis data that Labour did, just about, borrow more on average than the Conservatives, but as soon as inflation is taken into account this was very obviously not the case.

So the result is that Labour were still more prudent in their borrowing and also repaid more debt than the Conservatives when only the period since 1979 is considered.

I really do think the hypothesis that Labour are more prudent and more likely to repay debt than the Conservatives can be considered proven.

So, now we’re in a period when the only debt repayments under Labour were when Gordo was following Ken Clarke’s spending plans.

Excellent, Murph’s going to be throwing this number around for a few weeks yet. The correct thing to point out when he does is “I really do think the hypothesis that Labour are more prudent and more likely to repay debt than the Conservatives when they follow Conservative defined spending plans can be considered proven.”

5 thoughts on “Ritchie’s debt repayment calculation”

  1. You would think Richie would start the “neo-liberal era” (lol) in 1976, the year of the IMF bailout of the UK.

  2. I sometimes wonder if Mr. Murphy and his true believers are so devoid of humour and worldliness that they have completely lost the ability to pick up on popular pop culture iconic character names or the common sense precaution of googling posters to discover the more obscure names of porn stars, war criminals and other somewhat disreputable characters who post on his blog.

    Oh well, a source of some amusement to the rest of us.

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