Nope: I chose my words carefully, and I stand by them. And I don't think a graph showing increasing debt over 2001-2007 is a useful response to my claim that we had low debt compared to peer countries in 2007.
A government is not a household and comparisons based on personal income versus spending are ridiculous. Imagine you have accesible cash savings of perhaps ten years income, and your family are willing to loan you one year's income over a thirty year period: are you still worried about spending 10% above your income in any one year?
When it is 2 years, and soon to be 3, and there is interest payments to be made on that 3x10% and I was already in debt to the tune of 30% before it began.. YES I would be worried.
I don't know how you don't think there is increasing debt when the graph clearly shows that there is an increase in debt even though GDP is also increasing rapidly ahead of inflation. Now if you want to correctly argue that some of that debt is due to funding an illegal war, then I will concur, but to deny it is fooling yourself.
Of course debt is increasing! What I said was that debt was low relative to our peers in 2007, and remains low compared to those peers now. It is perfectly that debt is far higher now than in 2007 - but France, Germany, Italy, the US (and the individual states of the US)and Japan have all run their debts up as well, justifying my statement.
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andrewducker) wrote2010-05-11 09:04 am
no subject
A government is not a household and comparisons based on personal income versus spending are ridiculous. Imagine you have accesible cash savings of perhaps ten years income, and your family are willing to loan you one year's income over a thirty year period: are you still worried about spending 10% above your income in any one year?
no subject
I don't know how you don't think there is increasing debt when the graph clearly shows that there is an increase in debt even though GDP is also increasing rapidly ahead of inflation. Now if you want to correctly argue that some of that debt is due to funding an illegal war, then I will concur, but to deny it is fooling yourself.
no subject