Thread: Chancellor delivers plan for stability, growth and public services
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Old 19-11-2022, 18:19   #52
jfman
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Re: Chancellor delivers plan for stability, growth and public services
Quote:
Originally Posted by Paul View Post
I dont think "its ok for us to be in debt because someone is in even bigger debt" is a great excuse or plan.
Almost every country will almost always be in debt - the idea being that the money spent now innovating (e.g. in infrastructure) will reap rewards in economic growth therefore in turn making it easier and cheaper to pay off.

Similar to taking out a 25 year mortgage now. In year 24, after wage rises and career progression the burden of payments (should!) be much lower. You would also hope the house you have now would enjoy a rise in value.

However the problem is when you get into debt, and a deficit, without investing in infrastructure to promote growth. If you get the balance right it should work well. I accept it's theoretical.
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