In the eyes of the IMF and other leading financial experts the measures taken by Osbourne are correct.If we had elected Brown again (luckily we did not)there is very little difference in the amounts of cuts that are to be made. In the first year the cuts proposed by Labour amounted to the same that the current lot has implemented. In future years all that was to happen under Labour is the cuts were to be slightly less and would be one year longer than the curent proposals.
National debt as a percentage is higher than 1976 when Healy had to go the IMF with cap in hand. In the last year of the last government the budget deficit was a whopping £170 billion. This amount has to be borrowed. Throughout the last governments time in office they managed to have a budget surplus in only two years.When they were elected in 1997 the budget was actually in balance.
Borrowing more and more is like living beyond your means with a credit card. Eventually you reach your limit and most of what you pay is not really paying off the capital but just paying interest. The less you pay off the longer the pain will be and you finish up paying more.
The real question to ask and answer:
Is it right for us to continue to run up debt that future generations will be lumbered with and having to pay it off?
UBT stand by your phone and make sure your passport is valid. I can see an invitation coming for you to address and enlighten the G20 on how to solve the worlds problems at the next meeting in Cannes