The state does not create wealth; the state destroys it. The state can give you nothing because it produces nothing, and when it attempts it, it does so poorly. - Javier Milei
Great summary Luke and yes, if only we would learn from it here. The big questions I guess are why don't we learn from it and why we probably won't learn from it..
Some reasons I can think of why politicians here dodge it and will continue to take the easy/lazy path;
We seem to be able to borrow endlessly and the bond markets continue to allow it. Just put taxes up a bit more - that'll do it.
We've been able to print a £trillion when crises hits.
The public is unwilling to contemplate & allow the pain -as they don't understand the nature of the hole we are in. According to Sunak today, 2 out of 5 Brits don't even understand how their own finances work, let alone being able to grasp what £3trillion debt means to the UK.
Who can blame the general public though. as most politicians are economic illiterates and don't understand it themselves and are therefore incapable of trying to educate us.
Even if they do get it, most of them rather wished they didn't as explaining/implementing the actions required is certainly not a vote winner and so they resort to tinkering around the edges - a few billion here a few billion there.
Thanks for the comment David and I think you’ve hit the nail on the head. The reason we don’t learn from it is a lack of interest in learning from it.
No politician wants to stand at a podium and explain that years of stagnation and wanton fiscal policy has by all intents and measures hyper inflated our debt interest payments to be 8% of government spending. Instead, they want the easy win; standing up on the podium announcing how the omniscient government is saving lives by introducing yet another interventionist policy. And as you say, a billion here and a billion there adds up to a trillion very quickly when you’re not counting.
Milei has offered hope to all who believe in sound money, small government and balanced budgets. Politicians can always be relied on to do the right thing once all other avenues have been explored so we may need a crisis to start the job of radically reforming the state.
Unfortunately I think you’re correct that we need a crisis to radically reform the state. I just hope we don’t get as bad as Argentina before it happens.
Great summary Luke and yes, if only we would learn from it here. The big questions I guess are why don't we learn from it and why we probably won't learn from it..
Some reasons I can think of why politicians here dodge it and will continue to take the easy/lazy path;
We seem to be able to borrow endlessly and the bond markets continue to allow it. Just put taxes up a bit more - that'll do it.
We've been able to print a £trillion when crises hits.
The public is unwilling to contemplate & allow the pain -as they don't understand the nature of the hole we are in. According to Sunak today, 2 out of 5 Brits don't even understand how their own finances work, let alone being able to grasp what £3trillion debt means to the UK.
Who can blame the general public though. as most politicians are economic illiterates and don't understand it themselves and are therefore incapable of trying to educate us.
Even if they do get it, most of them rather wished they didn't as explaining/implementing the actions required is certainly not a vote winner and so they resort to tinkering around the edges - a few billion here a few billion there.
Thanks for the comment David and I think you’ve hit the nail on the head. The reason we don’t learn from it is a lack of interest in learning from it.
No politician wants to stand at a podium and explain that years of stagnation and wanton fiscal policy has by all intents and measures hyper inflated our debt interest payments to be 8% of government spending. Instead, they want the easy win; standing up on the podium announcing how the omniscient government is saving lives by introducing yet another interventionist policy. And as you say, a billion here and a billion there adds up to a trillion very quickly when you’re not counting.
Milei has offered hope to all who believe in sound money, small government and balanced budgets. Politicians can always be relied on to do the right thing once all other avenues have been explored so we may need a crisis to start the job of radically reforming the state.
Unfortunately I think you’re correct that we need a crisis to radically reform the state. I just hope we don’t get as bad as Argentina before it happens.