Learn me about Debt and Deficit.
If I understand rightly this country has a budget deficit of around 70 billion? And George O / Ed B reckons that they can bring this back into surplus given another term or a new term. But...our debt is measured in the trillions, I believe. Or at least over one trillion. So how does one reconcile moving into surplus with the fact that we won't actually be in surplus for many generations to come, if ever? Is it not like me saying, "Yeah I owe 50k on the Visa card, but this month I reduced the amount I put on there compared to this time last year, so aren't I doing well? And I reckon in another four years I won't be adding any more to that card - so aren't I doing really well?" ?? Meanwhile the interest rates are racking up and I still have to pay off the overall debt one day. Or am I missing something? I get debt lasts a long time - didn't we just pay off some World War One debt? (Although I must admit I didn't understand that either - it sounded to me like we simply wrote it off, rather like me dropping a line to the HSBC saying "that five k I borrowed for a Capri in 78 - let's forget it, shall we?). And I guess there's probably a lot of debt from WW2 and so on...but no-one seems to mention it. This is probably why I'm not an economist or politician.