Save later

The UK has a major problem, an obsession with balancing the books now when doing so means the books may never balance again.

The Labour government has inherited plans to reduce government investment even further to well under 2% of GDP, when the state is crumbling and growth badly effected by problems with health, infrastructure and education.

What is needed is a massive rise in investment now, to create the growth that will fund the state and let it bring down borrowing. The answer may be to change the borrowing rules, take Bank of England losses off the books and use that money to fund investment. The markets seem fine with the idea, or at least much finer than if borrowing begins to rise permanently and nothing can be done to stop it.

The Tory party candidates are all claiming they can do this by cutting “fat” in government spending, something that 14 years shows is madness, but then they have learnt nothing and are stuck in a virtual vortex of their own making.

Someone has to break out fo the cycle of decline, underinvestment and cheese paring and it has to be now. There is no alternative.

Jonty’s Jottings

Economics, trade and Brexit, not necessarily in that order but the dog always comes first.

By Jonty Bloom Media