Parse me this one

And unlike a household, the government does not need to worry about paying back debt when interest rates rise. Interests rates will only rise if economic growth returns. When it does, this will mean higher revenues in state coffers and, with higher employment, less public spending on safety nets for poorer households. At this point, taxes should go up, to ensure that corporations and the rich pay their fair share.

Tax revenue rises because economic recovery therefore tax rates should also rise in an economic recovery?

4 thoughts on “Parse me this one”

  1. And when (if) we get some proper growth (not guaranteed with our present shower of shite government) the same lefty types will be calling for increased minimum wage, increased benefit spending, more for the NHS etc. Any ‘proceeds of growth’ will be spent ten times over.

  2. dearieme – there’s quite a queue of monks at Purgatory waiting to expiate their responsibility in failing to chastise, chastise, chastise.

  3. Jimmers, for example see Blair/Brown 2001 – 2010: “The current government inherited a level of 39.9% in 1996−97, from which it subsequently fell to 36.3% in 1999−2000, the lowest level since
    1957−58. Since then public spending has increased, reaching 47.9% of national income in 2009−10” – Institute for Fiscal Studies 2010.

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