A few comments on video.
- I think US National Debt is a serious problem. US National debt is already 73%, but the US bailouts and rescue packages are greater than the UK.
- I mentioned the Labour government of 1931 increased taxes and cut unemployment benefits. Actually, it was a National government headed by Ramsey McDonald filled with mainly Conservatives. Most Labour MPs resigned.
- It is OK if National Debt rises now, so long as it is reduced when the economy recovers.
- The real fear if we were to have a deflationary decade of stagnant growth like in Japan. Unlike Japan, UK and US could not support a national debt of 195% - we simply don't have the necessary domestic savings.
UK National Debt
A week of stupid politics but good economics - Anatole Kaletsky