{"id":12645,"date":"2011-10-31T15:38:46","date_gmt":"2011-10-31T15:38:46","guid":{"rendered":"http:\/\/www.taxresearch.org.uk\/Blog\/?p=12645"},"modified":"2011-10-31T15:38:46","modified_gmt":"2011-10-31T15:38:46","slug":"where-the-deficit-came-from","status":"publish","type":"post","link":"https:\/\/www.taxresearch.org.uk\/Blog\/2011\/10\/31\/where-the-deficit-came-from\/","title":{"rendered":"Where the deficit came from"},"content":{"rendered":"

It is often said that government income and expenditure were out of synch before 2008.<\/p>\n

And it is also claimed that it is excessive spending before then that caused the current crisis.<\/p>\n

Neither\u00a0claim is supported by data. The following reflects HM Treasury out-turn data to 2009-10 and June 2011 budget data for 2010-11 onwards:<\/p>\n

\"\"<\/p>\n

The visual imaging tells the story.<\/p>\n

Labour ran surpluses.<\/p>\n

And then it ran tiny deficits that related in large part to investment spending.<\/p>\n

And then tax revenues\u00a0collapsed, which had nothing whatsoever to do with excessive spending and had everything to do with banking\u00a0collapsing.<\/p>\n

Supposedly this will correct by 2015. I don't believe that.<\/p>\n

But let's not for a minute think that Labour mismanaged the economy. The data simply does not suggest it did. Banks did that. And it was banks that created the deficit.<\/p>\n","protected":false},"excerpt":{"rendered":"

It is often said that government income and expenditure were out of synch before 2008. And it is also claimed that it is excessive spending
Read the full article…<\/em><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[],"class_list":["post-12645","post","type-post","status-publish","format-standard","hentry","category-economics"],"_links":{"self":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/12645","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/comments?post=12645"}],"version-history":[{"count":0,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/posts\/12645\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/media?parent=12645"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/categories?post=12645"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxresearch.org.uk\/Blog\/wp-json\/wp\/v2\/tags?post=12645"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}