In the US, the Congressional Budget Office projects federal deficits of roughly $1.9tn in 2025 — 6.2 per cent of GDP — and expects debt to climb towards 118 per cent of GDP by 2035. France’s debt stands above 113 per cent of GDP, heading towards 118 per cent by 2026, whilst UK gilt yields have surged to multi-decade highs on debt concerns. Across the developed world, the challenge of mounting debt now falls squarely to governments.
One way to describe this – only one way – is that the right also discovered the joys of spending the shit out of everything.
Traditionally, and by and large, the left when in power spent lossa on expanding the state. Hey, it’s fun. As the political pendulum swung the right would, when in power, manage that previous increase in wastrelness down. A bit at least. So, next time the left came in there was the fical possibility of spending like shit again.
What’s changed, more than anything else – in this incomplete explanation – is that the last couple of sets of rightish govt (and this is US and UK only, don’t know about other places) didn’t manage spending down. The right had discovered the joys of spending etc.
This is, sorta, true of the US since Bush. And it’s deffo true of the UK since Blair. Cameron etc just never did reduce the spending. Which is what is causing all the confusion among Labour MPs. What do you mean there’s no money to spend?
And, obviously, is getting debt roaring toward 120% and more of GDP in both places….