I did an interview on the above theme for an undergraduate run website called Economics Unlocked recently. This is their short version of the interview. I doubt anyone needs the 56-minute version. :
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Thanks for this Richard, more grist for the mill. I will be able to make use of it in my other postings. At the moment I am citing the 2017 work you published on the Brave New Europe site – debt 1946 to 2022 – it is provoking the trolls to apoplexy. I’ll see what this does for them.
Link?
Is it this – https://www.taxresearch.org.uk/Blog/2017/11/27/the-tories-created-two-thirds-of-the-uks-national-debt/ – updated last year – https://www.taxresearch.org.uk/Blog/2021/06/24/the-tories-have-always-borrowed-more-than-labour-and-always-repaid-less-they-are-the-party-of-big-deficit-spending/
To be fair, it is a simple “back of the envelope” analysis and criticism could be made of the method, but the result is startling nonetheless, and the excuses it elicits are interesting.
In short, Conservatives talk the talk of fiscal rectitude and so allow public services to wither, while running up the public deficit and privatising any benefits, whereas Labour feel forced to address a reputation for fiscal irresponsibility and so fail to do as much good as they could.
It often feels like we are still refighting the battles of the 1970s and 1980s, and probably making different mistakes this time.
Bill- yes, I have saved a link to it as well. Very useful for debunking ignorance and hysteria about the “national debt”. Mainstream media, and politicos have been getting away with politically-motivated deceit and scare tactics for far too long.
You mentioned that public debt owned by the central bank should be subtracted from public debt. Isn’t that basically the same idea as net worth? What’s the net worth of the UK government? If the government invests with debt then a good investment would leave it with a positive net worth. If the goal is to maximize the net worth of the government then there is no room for silly debates about austerity.
Good to see the up and coming R. Murphys of the future spreading the word.
🙂
Good one Richard. If society had this understanding the government would lose much of its justification for austerity.
Is there any way of knowing how much of the debt is held by the private banks?
That data is available in BoE statistics – but I have not done the search for it
Sorry…
No apology needed 🙂 I’ll have a look and see if I can dredge it up.